Former Loan Officer Awaiting Trial for Role in Multiple Frauds Indicted on Additional Charges

PHOENIX—Paige Kinney, aka JaimeLee Lawler, of Phoenix, was arraigned on Wednesday on fraud charges stemming from an insurance scam involving Allstate Insurance Company. Kinney is already facing trial on August 23, 2011, on a 30-count indictment charging wire fraud, conspiracy, money laundering, and conspiracy to commit money laundering related to her leadership role in a nearly $40 million mortgage fraud scheme. Kinney, 42, was also recently indicted on additional fraud charges, including bankruptcy fraud charges stemming from her attempt to hide assets from the federal bankruptcy court by holding the assets under the name JaimeLee Lawler.

The superseding indictment alleges that Kinney committed mail fraud against Allstate by staging a burglary of her residence and then reporting the loss against her homeowners’ insurance policy with Allstate. Between September and December 2010, Allstate compensated Kinney almost $140,000 for her reportedly stolen items. Kinney had other people hide the items that were alleged to have been stolen, and many of those items were subsequently found by investigators.

“This defendant is alleged to have used extraordinary means to defraud the U.S. bankruptcy court, and has now compounded her troubles with an alleged attempt to defraud her insurance company through a faked burglary,” said U.S. Attorney Dennis K. Burke. “This investigation and prosecution will help preserve the integrity of our bankruptcy and insurance systems.”

A conviction for mail fraud carries a maximum penalty of 30 years prison, a $1 million fine, or both. In determining an actual sentence, Judge Neil V. Wake will consult the U.S. Sentencing Guidelines, which provide appropriate sentencing ranges. The judge, however, is not bound by those guidelines in determining a sentence.

An indictment is simply the method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until competent evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The investigation preceding the indictment was conducted by the Internal Revenue Service - Criminal Investigations Division and the Federal Bureau of Investigation. The prosecution is being handled by Kevin M. Rapp and Monica B. Klapper, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER: CR-11-00491-PHX-NVW
RELEASE NUMBER: 2011-075(Kinney aka Lawler)