A Corona woman, already facing federal charges in a $15 million bank and bankruptcy fraud case, was indicted Friday on new federal wire fraud and contempt charges.
Carolyn Marie Jones, 51, who was the chief executive officer of a high- end denim jean company, is newly charged with four counts of wire fraud and three counts of contempt, according to a grand jury indictment returned Friday.
Prosecutors contend Jones defrauded two Georgia men in an investment fraud scheme while she was on bond pending a September trial in the bank and bankruptcy fraud case.
She had been prohibited from soliciting money from investors while the trial is pending, leading to the contempt charges, prosecutors said.
Jones allegedly convinced the Georgia men to invest with her, but spent the money on her own personal expenses, court papers said.
According to the 19-count indictment returned by a grand jury last year, Jones was the chief executive officer of Diamond Decisions Inc., which sold denim jeans marketed under the labels of Privacywear and PRVCY Premium.
According to the indictment, Jones obtained a $15 million business line of credit from Union Bank, using fake financial statements and fake tax returns.
The indictment states that Jones gave the bank a Social Security Number that belonged to someone else. She also allegedly hid from the bank that she had filed for bankruptcy previously and that she had a felony record.
According to the indictment, Jones defaulted on the $15 million loan after a year, causing Union Bank to file a lawsuit 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, federal prosecutors allege.
Jones faces decades in federal prison if convicted of all charges in both indictments.
– City News Service.