Corona Woman Facing 500+ Years in Prison After Being Arrested by Secret Service, IRS

A Corona woman who ran a high-end jeans company was arrested Tuesday for allegedly using money from two Georgia investors for her personal expenses, federal prosecutors announced.

Carolyn Marie Jones -- who was previously charged in a $15 million bank and bankruptcy fraud case -- was arrested by Secret Service and Internal Revenue Service agents on a wire fraud complaint handed down Monday in federal court, according to the U.S. Attorney's Office.

Jones, 51, was due in a federal courtroom in downtown Los Angeles Tuesday afternoon in connection with the alleged investment fraud scheme.

The criminal complaint alleges that Jones convinced the Georgia men to invest with her, but spent the money on her own personal expenses.

She had been free on bond in the bank and bankruptcy fraud case, in which she was prohibited from soliciting funds from investors while the Sept. 23 trial was pending, according to the U.S. Attorney's Office.

According to a 19-count indictment returned by a grand jury last September, Jones was CEO of Diamond Decisions Inc., which sold jeans under the labels of Privacywear and PRVCY Premium.

Jones allegedly got a $15 million business line of credit from Union Bank by using bogus financial statements and fake tax returns, and gave the bank someone else's Social Security number. She also allegedly hid from the bank that she'd previously filed for bankruptcy and had a felony record, according to the indictment.

She defaulted on the $15 million loan after a year, and Union Bank filed a lawsuit against her in state court.

"When Union Bank tried to seize the contents of the Diamond Decisions warehouse, Jones caused the company to file for bankruptcy and hid assets from the bankruptcy trustee," the indictment alleges.

Jones faces up to 489 years in federal prison if convicted in the bank and bankruptcy fraud case and at least 20 years in the wire fraud case.

— City News Service.