A federal prosecutor newly assigned to Joplin businesswoman Peggy Newton’s embezzlement case believes she should serve about five to six years in prison.
She and her attorney think it should be no more than four to 10 months.
Newton, 39, was scheduled to be sentenced Thursday in U.S. District Court in Springfield on the single count of wire fraud to which she pleaded guilty Oct. 14 in a deal with the U.S. attorney’s office for the Western District of Missouri.
U.S. District Judge Richard Dorr postponed Newton’s sentencing until June 18 at the request of Steven Mohlenreich, the assistant federal prosecutor who took over the case following the recent resignation of Robin McKee, another assistant U.S. attorney.
Mohlenreich’s motion for a continuance filed on Monday cited substantial differences between what the government and the defense think the extent of the fraud was that Newton perpetrated on her partner, Diane Pine, in their home decor business, Evergreen & Amber, and what her sentencing range should be.
The government maintains that Newton stole $300,000 from Pine through unauthorized credit card charges and forged checks. In his motion, Mohlenreich put the defense’s estimate of the loss at about $30,000.
The motion states that a pre-sentence investigation report recommends a sentencing range of 46 to 57 months. Mohlenreich wrote that he believes the range should be enhanced another two levels “for obstruction of justice.” He suggested a range of 57 to 71 months.
The prosecutor informed the judge in the motion that he would need additional time to prepare for the sentencing hearing, which he said “will be akin to a mini-trial” since the government will need to prove its assertions with respect to the extent of the fraud.
Newton’s attorney, John LeWright, filed objections to the pre-sentence investigation report with the court in February, denying assertions that his client signed Pine’s name on checks without her knowledge or permission, that she altered carbon copies of checks, or that she opened any accounts in Pine’s name without her authority.
Pine met Newton after moving to Joplin from Atlanta in 2005. They started Evergreen & Amber and operated out of Pine’s home before moving to 424 S. Main St. in Joplin. The store closed in 2009, with Pine first taking her complaint to Joplin police in April 2009.
Pine told the Globe last year that they started the business with $120,000 in charges on two of her credit cards, and that she later took out a mortgage on her home for $140,000 to pay off the credit card balances and make it possible for the business to establish credit lines with local banks.
The original 25-count indictment of Newton accused her of writing almost 400 checks on the store’s bank accounts between September 2006 and June 2009, to make purchases and pay for services for her own benefit and to obtain money for personal use.
The indictment further alleged that on about 500 other occasions, she used Pine’s personal credit cards and the credit cards of the store to make purchases and obtain money for personal use.
Pine maintains that she lost her house, her savings and her credit because of Newton’s actions. Newton filed for bankruptcy in federal court prior to being indicted.
Newton pleaded guilty to a single count of wire fraud. That count pertained to a charge on a Visa card belonging to Pine for $1,926.70 to cover the purchase of Newton family portraits from Lagow Portrait Designs Inc.
The defense’s objections to the pre-sentence investigation report allege that Pine’s credit-card loss was no more than $17,611.29 and that Newton repaid $2,575 of that to the business.
The defense acknowledged an additional $24,855.29 of purchases of clothing and accessories made by Newton that were worn by her at the business. But they maintain the two partners agreed that their personal appearance was important to the business and that they would use the credit cards to pay for clothing toward that end.
‘Extravagant’
A motion by Peggy Newton’s attorney reads: “Peggy admits that the two of them (she and her business partner, Diane Pine) got extravagant when they went to market and that they both used credit cards to purchase items of clothing to enhance their appearance at the store.
“Peggy also used the cards to purchase other items. It was her belief that she would pay back the business for these items with future income from the business, and then the business failed, and these charges were filed.”
Crime & Courts
Sentencing report disputed in ex-shop operator’s case
- Crime & Courts
-
-
Arma mother facing murder charge in sleeping baby’s death
Heather Buckalew fell asleep on a couch with her 4-month-old baby after a night last summer drinking beer with her boyfriend. The boyfriend, Donald Harvey, got up to go to work a few hours later and spotted his son, lying face down on a pillow between the back of the couch and his sleeping mother.
-
Former IRS worker gets probation after guilty plea to theft of funds
Pittsburg resident and former Internal Revenue Service employee Becky L. Book received two years probation after pleading guilty earlier this year to the theft of $26,449.65 in public funds.
-
Vandals cause $37,000 in damage at Joplin business
A Joplin business owner was the victim of a weekend vandalism spree that resulted in an estimated $37,000 in damages and theft, in addition to putting the company out of service for at least two days.
-
Two plead guilty to post-tornado wire theft
Two defendants pleaded guilty Monday to stealing copper wire from utility poles in the wake of the May 22, 2011, tornado that struck Joplin. Timothy M. Silveria, 45, of Joplin, and Nycoa K. Kracht, 32, of Laurel, Ind., entered open pleas of guilty in Jasper County Circuit Court to felony counts of theft from a public utility.
-
Firefighters douse blaze inside wall; no injuries cited
The Joplin Fire Department used thermal-imaging equipment Wednesday night to detect a hidden fire inside a residence.
-
Exeter resident hurt in accident in Barry County
An Exeter resident was injured in a single-vehicle accident at 2:15 p.m. Thursday on Missouri Highway 76, two miles west of Exeter in Barry County, according to the Missouri State Highway Patrol.
-
Pittsburg couple arrested; children taken out of home
PITTSBURG, Kan. — A Pittsburg couple was arrested and their three children removed from their care Wednesday when narcotics officers allegedly seized marijuana, methamphetamine and other items in a search of their home.
-
Joplin man arrested on felony charge of past sexual abuse
A 16-year-old girl’s recent disclosures to her mother regarding past sexual abuse has led to the arrest and charging of a Joplin man.
-
Identity-theft victim jailed on culprit’s warrant
Kurt Millard spent most of last weekend in the Jasper County Jail, locked up on another man’s arrest warrant. The 26-year-old Joplin resident could not convince his jailers they had the wrong guy. “I got the run-around the whole weekend,” Millard told the Globe. “I didn’t even get to wish my mother a happy Mother’s Day.”
-
Attorney general files suit against California contractor
Attorney General Chris Koster on Thursday filed a lawsuit against a California man, alleging he failed to provide construction materials and home repair services that had been paid for by victims of the Joplin tornado.
- More Crime & Courts Headlines
-
Okla. City Mayor: Up to 13K Homes Hit by Tornado
Raw: Aftermath of Deadly Attack in London
Paperless Scanner, Vision of the Future
Florida FBI Shooting Has Boston Bombing Links
Garcetti Elected Los Angeles Mayor Over Greuel
Raw: New Video of Deadly Oklahoma Tornado
IRS Official Pleads 5th Amendment
Lawyer: Feds Investigating Susan Powell Case
Former Rep. Weiner Running for New York Mayor
Jodi Arias: Death Penalty Would Cause More Pain
Police Ram House to End Hostage Standoff
Families Begin Returning to Their Homes in Moore
Raw: Aerial View of Moore Tornado Damage
Looking for Love? Take the Prague Metro
First Person: Baby Falcons on a New York Bridge
Crews Race to Find Survivors of Okla. Twister
Oklahoma: Images of Devastation, Reunion
Raw: Students Clash With Police in Chile
Protests Outside Cincinnati IRS Office
New Xbox One Entertainment Console Unveiled
