SAN JOSE – LAWFUEL – The Law News Network – United States Attorney Kevin V. Ryan announced that James Cornelius Kasey 31, of Sacramento, California, was arrested yesterday by U.S. Postal Inspectors for mail fraud. On January 18, 2006, a federal grand jury in San Jose indicted Kasey, charging him with mail fraud in connection with fictitious invoices he sent to businesses for non-existent freight services. The indictment and arrest warrant were unsealed yesterday afternoon.
According to the indictment, Mr. Kasey is alleged to have created a sham company called American Motor Lines, Inc. (“AML”), and mailed fictitious invoices under the auspices of AML to victim businesses in the Northern District of California and across the United States. The indictment alleges that the invoices purported to be bills for freight services rendered by American Motor Lines – when in fact no freight services had been performed – and requested that payment be sent to P.O. Box 787 in Vallejo, California. In response to these invoices, numerous business sent payments to AML, which Kasey deposited into bank accounts that he controlled.
The investigation thus far has identified approximately 500 victims nationwide with losses exceeding $167,000.
Mr. Kasey was arrested and made his initial appearance in federal court in San Jose yesterday and was released on a $50,000 bond. The defendant’s next scheduled appearance is at 9:00 a.m. on February 13, 2006, before U.S. District Court Judge Ronald M. Whyte.
The maximum statutory penalty for each count of mail fraud, in violation of 18 U.S.C. § 1341 is 20 years and a fine of $250,000, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An indictment contains only allegations against an individual and, as with all defendants, Mr. Kasey must be presumed innocent unless and until proven guilty.
Susan Knight is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Susan Kreider. The prosecution is the result of a two year investigation by the United States Postal Inspection Service.