Wednesday, March 30, 2005

30 Year Sentence for Frauduldent Scheme

John Henoud received a 360 month term of  imprisonment for his conviction last May for running fraudulent charity drives.  According to a press release issued by the U.S. Attorney's Office, Henoud and his coconspirators took funds that had been solicited for the"Youth At Risk Foundation" from hundreds of individuals and businesses, and laundered the funds threw a pawn shop.  Perhaps the most sensational charge against Henoud involved him soliciting funds for the family of a person killed in the Sept. 11 attacks who he claimed was his cousin (there was no family relationship), and Henoud simply keeping the money for himself (See Virginian-Pilot story here on Henoud's conviction in May 2004).  The total loss from his activities was approximately $358,000, so a thirty-year prison term is well beyond what the Federal Sentencing Guidelines call for, even considering the fraudulent charity claims.  This is the longest prison term for a non-recidivist fraud conviction I have seen. (ph)


UPDATE (3/30): I have received additional information about the sentencing of Mr. Henoud showing that his sentence was within the Guidelines range.  The press release from the U.S. Attorney's Office does not mention that he has five prior convictions and was on probation for a wire fraud conviction at the time of the offenses in the current case -- hence, he's quite a recidivist.  Also, while the actual loss was approximately $358,000, the intended loss under the Guidelines was significantly higher, thereby pulling the sentence up even further.  Copies of the government's Sentencing Memoranda that provide additional information on the basis for the sentence are available here: Download HenoudSe.pdf  and Download HenoudSE2.pdf . (ph)

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