Nine charged in check cashing scam
Nine people, including former Department of Social Services Finance Director Paul Timothy Moore, who is the brother of former state Sen. Tommy Moore, and Gwendolyn Robinson, a local high school basketball coach, have been linked to an embezzlement scheme that drained $5.5 million from DSS accounts over the span of four years, according to federal prosecutors.
Moore, 61, of Columbia, and nine others were charged in a federal complaint with theft of federal program funds, mail fraud, wire fraud and conspiracy.
During an interview with state agents, Moore reportedly confessed to a number of the allegations. He said he used the money for his alcohol addiction, gambling debt and at adult dance clubs.
Prosecutors have named Jonathon Moses, 42, of Columbia, as Moore's co-conspirator.
Both men allegedly enlisted several state residents to cash approximately 761 DSS checks between May 2004 and October 2008 and then divvied up the money as it came in.
Eight other people have been identified as having cashed checks and/or having recruited others into the scheme, prosecutors said.
Robinson, 41, of Union Church Lane in Aiken, is also charged.
She has been the girls junior varsity basketball coach and assistant varsity basketball coach at Aiken High School.
Ortyse S. Mazone, 37, and Calandra Fabary Thomas, 38, both of Aiken, have also been named in the check cashing scam.
Columbia residents Herbert McKie, 27, Aisha Leheva Crumpton, 23, Tyra L. Goodson, 36, Nova Kathleen Johnson, 40, and Sandra Denease Smith, 45, are also implicated in the 13-page criminal complaint.
Mazone is still at large. Other arrests are expected, prosecutors said.
The fraudulent check scam unraveled in early October 2008, when McKie contacted U.S. Secret Service agents with information about the embezzlement he said had been going on in Columbia for several years. At the time he came forward, McKie was on probation for cashing counterfeit commercial checks in an unrelated incident, according to federal prosecutors.
He told agents that Moses obtained the DSS checks from a white male, who was referred as the "partner" and "man" that worked for the State of South Carolina and the brother of former South Carolina gubernatorial candidate Tommy Moore.
Between 2004 and 2007, McKie said Moses gave him three to four state checks made payable in his name that he cashed at various Wachovia Bank branches in Columbia. After cashing the checks, each written for about $7,000, he said he gave the money back to Moses and kept about $1,000 for himself. He went on to say Moses told him not to worry about getting caught because it was an "inside job," and if questioned, he was to say the checks were "grants," prosecutors said.
McKie later told Moses that there was a federal investigation underway, and in a taped telephone conversation between the two, Moses said Moore was going to come forward, prosecutors said.
During the phone call, Moses said Moore was going to turn himself in.
"It is what it is, but the man is ready to step up and admit what he did and do his time, Paul takes full responsibility for everything," Moses said.
On Nov. 24, 2008, Moore and his defense counsel met with state agents.
Moore said he resigned from his position as finance director after Moses told him he was the target of a federal investigation and explained how he was able to approve checks without sounding any alarms.
The primary source of the money, he told prosecutors, was South Carolina Heath and Human Services.
Moore told agents he approached Moses in 2004 and told him that there were "grants" available to the "needy." He said if Moses gave him names and address, he would see to it they received the "grants." Moore admitted to having sole approval over the allocation of funds and the checks would range from $5,000 to $8,000, according to the federal compliant.
Moore gave Moses the checks to be distributed to selected individuals. He said they should cash them and take anywhere from $1,500 to $2,000 of themselves.
During the interview, Moore said he wrote about 200 checks over four years time, amounting to about$ 1.3 million. Prosecutors said the total was about $5.5 million.
State agents also interviewed the other suspects implicated in the scam.
Robinson spoke with investigators on Jan. 9.
Prosecutors said she told agents she was approached by Johnson in 2004 about receiving a "grant."
The first check she received to cash and divvy up totaled $8,214. She said it was mailed directly to her home. Two years later, she received a $7,000 check and allegedly confessed to cashing both checks and giving the money back to Johnson who, in turn, gave it to Moses.
Robinson was then pulled deeper into the scam.
She said she was asked to find others who would like to receive "grants" from the state.
She said she provided at least five names and address and received $200 cash for each name, according to the criminal complaint.
In April, she met with Moses and began bypassing Johnson and submitted names directly to Moses, she told investigators.
During 2008, she gave him 10 names. She later received $5,000 cash for names and $1,000 cash to give to the check casher.
Mazone, Thomas and others linked to the scam also met with special agents and admitted to lesser roles in the scheme, prosecutors said.
The maximum possible penalty for theft of federal program funds and conspiracy is 10 years and a fine of $250,000; mail fraud and wire fraud each carry a maximum possible sentence of 20 years and a $250,000 fine.
Agents have encouraged anyone involved in the scam to come forward by calling the Secret Service at (803) 772-4015.
Contact Karen Daily at kdaily@aikenstandard.com.