Kansas City Business Owner Indicted in $125,000 Fraud Scheme
KANSAS CITY, MO—Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that the owner of a Kansas City, Mo., business has been indicted by a federal grand jury for a wire fraud scheme in which he stole more than $125,000 from a retiree who wished to assist the inner city community by renovating homes for those in need.
Gregory T. Evans, 59, of Kansas City, Mo., was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo., on Wednesday, Aug. 26, 2015. Evans was arrested today and has an initial court appearance this afternoon.
Evans is co-owner of Regal Homes, LLC. According to the indictment, Evans was introduced to the victim in 2012 and portrayed a desire to help her to assist impoverished neighborhoods. Evans suggested that she buy a house in the 4100 block of Chestnut in Kansas City, Mo., which Regal Homes would renovate so that it could be provided to a needy family.
The victim agreed to purchase the house and wired money to Regal Homes on two occasions. The first wire transfer, in the amount of $17,000 on Aug. 15, 2012, was for the purpose of buying the house. Evans allegedly bought the house for only $8,000 to $12,000. The second wire transfer, in the amount of $22,000 on Aug. 24, 2012, was for the purpose of renovating the house. Evans allegedly did not renovate the house as promised but instead used those funds for cash withdrawals and personal expenses, and transferred money to his personal bank account.
According to the indictment, Evans also offered the same victim a chance to invest in a securities deal with a bank in Thailand in 2012. Evans claimed that he had personally invested $500,000 with the company and was involved in the proposed securities deal. The victim investor authorized two $50,000 wire transfers to Regal Homes but she never received any money from the investment.
Analysis of the Regal Homes bank account, the indictment says, revealed that $90,000 of her total investment was transferred into Evans’ personal bank account. Analysis of Evans’ personal bank account, the indictment says, revealed that more than $57,000 was drawn out in cash via checks, withdrawals, and ATMs, and that an additional $13,000 was spent at retail stores, convenience stores, grocery stores, restaurants, hardware stores, health and beauty stores, and the like.
According to the indictment, Evans stole a total of $125,480 from his victim.
Evans is charged with three counts of wire fraud. The indictment also contains a forfeiture allegation, which would require Evans to forfeit any property derived from the proceeds of the alleged offense, including $125,480, representing the proceeds of the wire fraud scheme.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kathleen D. Mahoney. It was investigated by the FBI.