Fraud hitting savings

Published 7:24 pm Thursday, February 9, 2006

By Staff
LANSING - Residents in Michigan may have lost the money they hoped to use for their retirement, due the actions of one woman.
United States Attorney Margaret M. Chiara announced today that Carolyn S. Callahan, age 54, of South Bend, Ind., pleaded guilty on Feb. 2 to one count of bank fraud in violation of title 18 United States Code, Section 1344, and one count of wire fraud violation of Title 18 United States Code, Section 1343.
During 2004 and 2005, Callahan used her position as an investment adviser to defraud her Michigan clients out of more that $250,000.
She defrauded her clients by taking money intended for their investment accounts and redirecting it into her personal accounts. Callahan used the money for her own personal expenditures.
For many of her victims, the money stolen represented assets set aside for thir retirement.
Senior United States District Judge Gordon J. Quist will sentence Callahan on May 23, at 3:30 p.m.
Callahan faces a maximum sentence of 30 years on Count 1 (bank fraud) and 20 years on Count 2 (wire fraud), plus supervised release after her term of incarceration, fines and an order to pay restitution to her victims.
The charges against Callahan arose from an investigation by Special Agent Roy Johnson, Federal Bureau of Investigation, St. Joseph.
This case is being prosecuted on behalf of the United States of America by Assistant United States Attorney Matthew G. Borgula.