COLUMBIA --- Twelve more people have been charged in a check-cashing scheme that might have involved hundreds and defrauded South Carolina's social services department of more than $5 million, federal prosecutors said Wednesday.
U.S. Attorney Walt Wilkins said the co-defendants join eight others charged with cashing checks written by former Department of Social Services finance director Paul Timothy Moore, accused of being the ringleader of a scheme that embezzled $5.2 million over nearly five years.
A co-defendant, Jonathan Moses, recruited people to cash the checks and gave their names to Mr. Moore, according to prosecutors. Mr. Moore would have fraudulent checks made out to the recruits. Prosecutors say the recruits then cashed the checks, kept a portion of the money and gave the rest back to Mr. Moses and Mr. Moore.
From 2004 to 2008, authorities say Mr. Moore requested about 750 checks cut from state Treasury Department funds.
The 12 new defendants are: Sandra Kay Alston, 49; Eddie N. Belton, 54; Ronald Bennett, 50; Barbara Goodson Boyd, 57; Sophia Lorraine Clark, 37; Lawanda Shea Gadson, 32; Brenda Joyce Goodson, 54; Gregory Evexs Harts, 47; Elizabeth Ann Harts, 47; Eliza Dana Hayes, 22; Mary Louise Hayes, 52; and Curtis Demetrius Hollins, 39.
All 12 have pleaded not guilty to one count each of theft of federal program funds, and their attorneys did not return messages. None of the suspects are affiliated with the Department of Social Services, Assistant U.S. Attorney Kevin McDonald said.
Last month, six of the original eight suspected check-cashers pleaded guilty to theft of federal program funds, each facing a possible 10-year prison sentence. In all, Mr. Wilkins has said he suspects hundreds were recruited to cash the checks, and more indictments are expected.
Mr. Moore has admitted distributing 200 checks over four years, for a total of $1.3 million, saying he spent money he got back on alcohol, gambling and strippers. But prosecutors say a Social Services audit showed $5.5 million missing from the agency -- money they say Mr. Moore took, although only $5.2 million of that money was actually cashed.
Mr. Moore has pleaded not guilty to theft and fraud charges, but his attorney says Mr. Moore is planning to plead guilty once he can reach agreement with prosecutors on the amount taken from the agency.
Mr. Moses has been out on bond since January on charges of conspiracy, mail fraud and wire fraud.
The Augusta Chronicle ©2012. All Rights Reserved.
