Apr. 20—Shady Spring man pleads guilty to fraud
beckley, w.va. — Paul Richard Massey, 50, of Shady Spring, pleaded guilty Thursday to wire fraud and money laundering. Massey admitted to issuing fraudulent payments as an insurance claims adjuster and using the money to fund a powersports business that he owns.
According to court documents and statements made in court, Massey was employed as a claims adjuster for Allstate Insurance Company from 2015 until June 2019. Massey was routinely assigned claim files to investigate after Allstate customers filed a claim under their insurance policy. Massey's job included investigating assigned claims, determining coverage, and coordinating with the insured customer and others to determine what services were needed to bring a claim to conclusion. In his role as claims adjuster, Massey had the authority to issue settlement check payments to policy holders and businesses on behalf of Allstate to settle insured property damage claims.
Massey admitted to authorizing and issuing a $15,110.29 check on behalf of Allstate to a business called American Mitigation Services LLC, also known as AMS Cleaning, on Dec. 26, 2018. The check was issued for mitigation work allegedly performed by AMS Cleaning and was deposited into AMS Cleaning's bank account. Massey admitted that this payment was fraudulent, as AMS Cleaning had completed no work to justify the payment. Massey further admitted that he had a business relationship with AMS Cleaning and was an authorized signer on the business's bank account.
Massey also admitted that he authorized and issued 68 fraudulent claim payment checks totaling more than $850,000 on behalf of Allstate to AMS Cleaning from at least Jan. 22, 2018, until at least June 19, 2019. Massey tried to hide the fraudulent nature of some of these checks by creating fraudulent receipts and documents that appeared to justify the payments.
Massey used the fraudulent claims payments deposited in AMS Cleaning's bank account to fund Massey Powersports LLC, a Beckley business owned and operated by Massey. The investigation revealed that Massey routinely wrote checks from AMS Cleaning's bank account to pay Massey Powersports employees, to purchase inventory for Massey Powersports, and to pay Massey Powersports' recurring bills. Massey admitted that on Dec. 27, 2018, he wired $105,403.20 in fraudulently obtained proceeds from AMS Cleaning's bank account to a North Carolina business to prepay for tractors intended for Massey Powersports.
Massey tried to conceal his scheme from investigators. On June 27, 2019, Massey falsely told an Allstate fraud investigator that he had no financial interest in AMS Cleaning. On Aug. 14, 2020, Massey created and submitted a fictitious $1 million sales contract for AMS Cleaning in response to a federal grand jury subpoena. On Jan. 22, 2021, Massey falsely told a Federal Bureau of Investigation special agent that he had negotiated the sale of AMS Cleaning with an individual identified by Massey as "Jerry Wayne."
Massey is scheduled to be sentenced on Aug. 4 and faces a maximum penalty of 30 years in prison, three years of supervised release, and a $500,000 fine. Massey owes $862,871.29 in restitution.
----Beckley man pleads guilty to fraud crime
beckley, w.va. — Timothy Gross, 39, of Beckley, pleaded guilty Thursday to wire fraud, admitting to making a fraudulent payment with an employer-issued credit card as part of a scheme to divert more than $65,000 in credit card charges to his personal bank account.
According to court records, Gross was hired by Amerihost LLC in 2020 as a maintenance worker for Beckley Town Homes, a multi-unit apartment building in Beckley. Amerihost issued Gross a credit card for legitimate business purposes and not for personal use.
On April 5, 2020, Gross used his Amerihost-issued credit card to submit a $1,712 payment to "J and Sons Electrical and Plumbing." Gross admitted that no work had been conducted to justify the payment, and that he created a fraudulent invoice that described the payment as being for eight circuit-breaker panel boxes. Gross further admitted that he opened an account for "J and Sons Electrical and Plumbing" on the Square payments platform to divert payments from the Amerihost-issued credit card for his personal use, and linked that Square account to his personal bank account.
On at least 38 occasions from at least Jan. 1, 2020, until at least April 15, 2020, Gross used the Amerihost-issued credit card to send more than $65,000 in unauthorized, fraudulent payments to J and Sons Electrical and Plumbing for work that was not performed. Gross created false work invoices as part of his scheme.
Gross is scheduled to be sentenced on Aug. 4 and faces a maximum penalty of 20 years in prison, three years of supervised release, and a $250,000 fine. Gross owes more than $65,000 in restitution.
----Beckley man pleads guilty to export fraud
beckley, w.va. — Rana Zeeshan Tanveer, 42, of Beckley, pleaded guilty Thursday to committing an export fraud violation. Tanveer admitted that he knowingly submitted false export valuations for two high-technology devices that Tanveer shipped to Pakistan.
According to court documents and statements made in court, Tanveer ordered the two high-technology items on May 31, paying more than $4,000 for both items. The two items were shipped to Tanveer in Beckley and he received them on June 7, 2017. Tanveer admitted to creating a false invoice that intentionally understated the value of the items as less than $200. Tanveer further admitted to using the false invoice to ship the items to Pakistan using a freight forwarding service in July 2017.
Tanveer also admitted that he intentionally used false invoices on at least six other occasions, from June 14, 2014, through Aug. 20, 2018, that deliberately undervalued the purchase cost of U.S.-origin technology that Tanveer exported to Pakistan.
"Mr. Tanveer pleaded guilty to unlawfully shipping high-technology devices overseas and is now being held accountable," said Assistant Attorney General Matthew G. Olsen of the Justice Department's National Security Division in a press release. "The Department of Justice is steadfast in its commitment to prosecute those who would undermine our nation's security and economic interest by flouting U.S. export control laws."
Federal law requires the filing of accurate Electronic Export Information (EEI) through the Automated Export System (AES) about certain items that are exported from the United States. It is a federal crime to knowingly submit false or misleading Electronic Export Information. The purpose of this export requirement is to strengthen the ability of the United States to prevent the export of certain items to unauthorized destinations or end users. Accurate information in the Automated Export System also aids the United States in targeting, identifying, and, when necessary, confiscating suspicious or illegal items or shipments prior to export.
Tanveer is scheduled to be sentenced on Aug. 4 and faces a maximum penalty of five years in prison, three years of supervised release, and a $250,000 fine.
----Mich. man gets over 15 years for drugs
charleston, w.va. — Michael Henderson, 34, of Detroit, Mich., was sentenced Thursday to 15 years and eight months in prison to be followed by five years of supervised release for possession with intent to distribute 500 grams or more of methamphetamine.
According to court records, law enforcement officers conducted a traffic stop on March 3, 2022, in downtown Charleston of a vehicle in which Henderson was a passenger. During the traffic stop, a police K-9 alerted to the presence of controlled substances in a duffel bag belonging to Henderson. Officers searched the bag and found about 5 pounds of methamphetamine.
----Woman pleads guilty to role in meth sales
charleston, w.va. — Kimberly Dawn Legg, 49, of Charleston, pleaded guilty Thursday to conspiracy to distribute methamphetamine, admitting to a role in a drug trafficking organization that operated in the Charleston area.
According to court records, for several months prior to Dec. 5, 2022, Legg sold quantities of methamphetamine obtained from a supplier who usually delivered the methamphetamine directly to her Lotus Drive residence in Charleston.
Legg admitted to handling the money when selling the methamphetamine to customers while co-defendant Larry Wayne Legg typically weighed out the amounts.
Legg further admitted that the supplier usually provided her with the methamphetamine without requiring full payment, with the understanding that he would be paid from the individual sale proceeds.
On Dec. 4, 2022, the supplier delivered about 1 pound of methamphetamine to Legg's residence. The next day, law enforcement officers executed a search warrant at Legg's home and found the methamphetamine. Legg admitted that she and Larry Legg intended to sell the seized methamphetamine.
Legg is scheduled to be sentenced on Aug. 3 and faces a maximum penalty of 20 years in prison, three years and up to a lifetime of supervised release, and a $1 million fine.
Larry Legg, 55, of Charleston, pleaded guilty to conspiracy to distribute methamphetamine on March 6. The Leggs are among 30 individuals indicted as a result of Operation Smoke and Mirrors, a drug trafficking investigation that has yielded the largest methamphetamine seizure in West Virginia history. Law enforcement seized well over 200 pounds of methamphetamine as well as 28 pounds of cocaine, 20 pounds of fentanyl, 18 firearms and $747,000 in cash.
Two other co-defendants have pleaded guilty. Indictments against the other defendants are pending.
