Former DOT/OIG Supervisory Auditor Pleads Guilty to Mail Fraud and Conspiracy Charges Involving Fraudulent Check Scheme
August 28, 2008
On August 28, 2008, former DOT/OIG supervisory auditor Paulette Heggins–Carter pled guilty to mail fraud in U.S. District Court, Dallas, Texas. Ms. Heggins–Carter’s sister, Janie Heggins, pled guilty to mail fraud and conspiracy to commit mail fraud. Ms. Janie Heggins was the former Controller at ART Holdings, Inc., a financial services company located in Dallas, Texas. In May 2008, the sisters were charged with conspiring to carry out a scheme to defraud ART Holdings of approximately $469,000 by issuing more than 250 fraudulent checks against the financial accounts of ART Holdings and its subsidiary companies. The money was allegedly used to pay personal credit card bills and telephone bills, make mortgage payments, and pay operational expenses for a night club the sisters jointly owned. Sentencing for Ms. Heggins–Carter and Ms. Janie Heggins is scheduled for December 4, 2008. This is an ongoing, joint investigation with the Federal Bureau of Investigation.