Sunday, May 25, 2025
48.0°F

Sentence issued for 'mind boggling' fraud

The Associated Press | Hagadone News Network | UPDATED 11 years AGO
by The Associated Press
| May 15, 2014 6:40 PM

BILLINGS (AP) — A federal judge sentenced a Billings woman to more than two years in prison Thursday for defrauding a bank and investors in a series of schemes that included a false claim her daughter had died of leukemia.

U.S. District Judge Susan Watters rejected Angela Corson Smith’s request for a more lenient sentence. Although Smith had no prior criminal record, Watters said the defendant’s pattern of deceit was staggering in its scope and demanded stiff punishment.

Police in Billings investigated allegations that Smith posed as a nurse at St. Vincent Healthcare, but have not filed any charges in that matter. Watters said even after her conviction on bank and wire fraud charges, Smith has continued to dispute the hospital’s contention that she had not worked there.

She pleaded guilty in January to one count each of bank fraud and wire fraud. Six other counts were dismissed under a plea agreement with prosecutors.

The federal charges were filed last June after Smith borrowed large sums of money from others and avoided repayment by lying about her health, the state of her marriage and her daughter, authorities said.

Prosecutors said Smith forged her husband’s signature to take out a home equity loan from Billings-based Altana Federal Credit Union in October 2009.

When she was contacted by credit union employees in 2012 about payments on the loan, Smith convinced them her daughter had died of leukemia just a day earlier. The girl, now 15 years old, was never ill with the disease, according to court documents filed by the U.S. Attorney’s Office.

The wire fraud charge alleged she deceived others into investing $57,000 in a medical billing business that Smith never started. That scheme ran from September 2010 to January 2013.

Watters called the conduct “mind boggling,” and sentenced Smith to 27 months in prison to be followed by five years of supervised release. The prison term was at the high end of federal sentencing guidelines.

She also was ordered to pay $151,000 in restitution to seven victims.

Smith “used her own daughter and claimed she had suffered from serious illness and died to get people to give her money,” Watters said.

“That’s one of the saddest circumstances in all this,” Watters added.

MORE IMPORTED STORIES

Defendants in Crow corruption case avoid prison sentences
Daily Inter-Lake | Updated 10 years, 11 months ago
Crow defendants to keep most proceeds
Daily Inter-Lake | Updated 11 years ago
Judge accepts Giannulli plea deal in college bribery scheme
Columbia Basin Herald | Updated 4 years, 9 months ago

ARTICLES BY THE ASSOCIATED PRESS

September 9, 2021 12:03 a.m.

The Latest: US helped family escape Afghanistan overland

WASHINGTON — The United States is confirming for the first time that it has helped a U.S. citizen and family members to escape Afghanistan through an overland route to a neighboring country.

September 8, 2021 12:03 a.m.

The Latest: US helped family escape Afghanistan overland

WASHINGTON — The United States is confirming for the first time that it has helped a U.S. citizen and family members to escape Afghanistan through an overland route to a neighboring country.

September 8, 2021 12:03 a.m.

The Latest: Top Republican says Taliban holding Americans

WASHINGTON — The top Republican on the House Foreign Affairs Committee says some Americans who have been trying to get out of Afghanistan since the U.S. military left are sitting in airplanes at an airport ready to leave but the Taliban are not letting them take off.