The Joplin Globe, Joplin, MO

Crime & Courts

October 3, 2012

Carthage apartment owner pleads guilty to numerous federal charges

CARTHAGE, Mo. — A Carthage apartment manager pleaded guilty in federal court today to a nearly $400,000 fraud scheme involving several apartment complexes.

Barbara J. Evans, 54, of Carthage, waived her right to a grand jury and pleaded guilty before U.S. Magistrate Judge James C. England to a federal information that charges her with one count of wire fraud, one count of money laundering and one count of filing a false tax return.

Evans was employed as a property manager for Preservation Housing Management (PHM), which is based in Boston, Mass., and owned the Deerfield Village, Highland Acres, Highland Meadows and Maplewood Manor apartment complexes in Carthage. PHM oversees these properties through its office in Kansas City.

When a low-income tenant rented an apartment at Deerfield Village and qualified for rental assistance/subsidies, Evans generally calculated the move-in rent amounts correctly. However, when tenants reported an increased income, instead of reflecting the increased rent in the computer system, she delayed reporting the increased rent to PHM. As a result, tenants would pay the correct, higher rent amount to Evans, but Evans continued to provide the lower rent payments to PHM. Evans pocketed the difference between the higher rent payments she received from tenants and the lower amounts she passed on to PHM.

From 2003 through 2011, Evans fraudulently received net proceeds of approximately $206,069 from this scheme.

In May 2006, PHM also discovered that Meeco Construction, a contractor hired by Evans to perform work on Deerfield Village and Maplewood Manor, was owned by her husband, Mike Evans. Meeco Construction had been performing work on the properties since October 2003. PHM's former president verbally reprimanded Evans and she was instructed to immediately discontinue using vendors related to PHM employees.

In September 2006, Evans, with the help of her daughter, Addison Kinney, created A.J. Construction. Evans created and submitted all A.J. Construction bids and invoices to PHM. PHM policy required two or three competing bids on any construction project over $5,000. Evans, through her capacity as manager, falsified and submitted fictitious competing bids and insurance documents to ensure A.J. Construction would get all of the construction contracts at the HUD-subsidized properties she managed. From Sept. 28, 2006, to June 15, 2009, A.J. Construction received $191,922 for work completed at Deerfield Village, Highland Meadows, Highland Acres, and Maplewood Manor. A.J. Construction performed work only for PHM Properties.

According to the U.S. Attorney’s office, Evans also knowingly concealed the proceeds of this wire fraud when she purchased and remitted money orders in the tenants' names. Evans admitted that she cashed or deposited tenant’ rent payments into her own bank account, then used those funds to purchase money orders for lesser amounts. Evans forged tenants’ signatures on the money orders and falsely represented those money orders to be their rent payments.

Evans also admitted that she filed false federal income tax returns for the years 2006, 2007, 2008, 2009, and 2010 by failing to report $171,790 on her Form 1040, U.S. Individual Income Tax Returns, resulting in a total tax loss to the federal government of $28,737.

Under federal statutes, Evans is subject to a sentence of up to 43 years in federal prison without parole plus a fine and an order of restitution. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

1
Text Only
Crime & Courts
  • Joplin couple indicted in child porn case

    A federal grand jury indicted a Joplin couple Wednesday for alleged sexual exploitation of a second child in addition to a girl who was the subject of a preceding indictment of the husband for allegedly producing and distributing child pornography.

    July 23, 2014

  • Grand jury indicts Tennessee man on three charges

    A federal grand jury indicted a Tennessee man Wednesday on charges related to the alleged enticement of a minor from Lawrence County for sexual acts.

    July 23, 2014

  • Joplin man faces grand jury indictment in child porn case

    A federal grand jury returned an indictment Wednesday charging a Joplin man with receiving and distributing child pornography over the Internet.

    July 23, 2014

  • High winds overturn empty box truck in Cherokee County

    High winds from Wednesday’s thunderstorm overturned an empty box truck in Southeast Kansas, authorities said.

    July 23, 2014

  • Tulsa man faces robbery charge

    A suspect in a shoplifting incident Monday at the Sears store in Northpark Mall in Joplin was charged with robbery after he and an accomplice reportedly resisted a store employee’s effort to detain them.

    July 22, 2014

  • Wrecks injure two on area roadways

    A Carthage man suffered serious injuries in a motorcycle accident at 3:35 p.m. Tuesday on East 50th Street, a half-mile east of Joplin in Newton County, according to the Missouri State Highway Patrol.

    July 22, 2014

  • Assault sends man to Joplin hospital

    Joplin police are investigating an apparent felony assault that sent a 20-year-old man to Freeman Hospital West with injuries to his head and shoulder.

    July 22, 2014

  • Joplin man to stand trial in accident case

    A passenger accused of causing an accident on Interstate 44 in Joplin that injured three others as well as himself was ordered bound over for trial Tuesday on three felony counts.

    July 22, 2014

  • Youth shot in shoulder after reportedly encountering burglars

    A male juvenile was treated for a gunshot wound to his shoulder after a reported home invasion early Saturday in the 100 block of South 250th Street, the Crawford County Sheriff’s Department said in a news release.

    July 21, 2014

  • Joplin couple indicted on child pornography charges

    A federal grand jury today indicted a Joplin couple for alleged sexual exploitation of a second child in addition to a girl who was the subject of a previous indictment of the husband for producing and distributing child pornography.

    July 23, 2014

Local News
Sports
Facebook
Poll

Amendment 8 in Missouri proposes a special lottery ticket to help fund state veterans homes. How will you vote?

For it.
Against it.
     View Results
Twitter Updates
Follow us on twitter
NDN Video
Official: Air Algerie Flight 'probably Crashed' TSA Administrator on Politics and Flight Bans Raw: National Guard Helps Battle WA Wildfires Raw: Ukraine's Donetsk Residents Flee Senators Push to End Hamas Threat in Cease-Fire A Young Victim's Premonition, Hug Before MH17 U.N. School in Gaza Hit by Israeli Strike Raw: Deadly Storm Hits Virginia Campground Officials Warn of Avoidable Death in Hot Cars Death Penalty Expert: 'This is a Turning Point' House Committee at Odds Over Obama Lawsuit Raw: MH17 Victim's Bodies Arrive in Netherlands Raw: UN School Used As Shelter Hit by Tank Shell Raw: Gunmen Attack Iraqi Prison Convoy Plane Leaves Ukraine With More Crash Victims The Rock Brings Star Power to Premiere Raw: Families Travel to Taiwan Plane Crash Site Arizona Execution Takes Almost Two Hours Crash Kills Teen Pilot Seeking World Record