DISB Investigations Lead to Convictions (Con't.)

DISB assisted the Federal Bureau of Investigation; the US Securities and Exchange Commission (SEC); the US attorney for the state of Maryland; and the Maryland Office of the Attorney General, division of securities, with this investigation. In April 2001, DISB's Enforcement and Investigation Bureau had initiated an investigation into the activities of Dukes and his co-founder Teresa Hodge, based on information from the SEC's office for the state of Maryland. DISB issued several subpoenas to District-based banks and account records showed that 11 District residents had lost money because of the scheme. The department shared the information with the US attorney's office in Maryland, the state of Maryland and the SEC. Dukes' co-defendant Hodge is awaiting trial on the same charges.

Smith was sentenced in October to 120 days incarceration (suspended), two years supervised probation and ordered to pay restitution of $6,500 as a result of a guilty plea she had entered in August 2005. She had submitted falsified DC time and attendance records in support of a claim to State Farm that stated she was on official sick leave because of a traffic accident, in an effort to obtain reimbursement for lost wages. However, official payroll records showed that Smith was on duty. She had fraudulently received $6,500 for lost wages from State Farm for the period December 9, 2002 to December 30, 2002. Investigator Jerry Smith, DISB Enforcement and Investigation Bureau, conducted the inquiry in cooperation with the DC Office of the Inspector General.

"Our agency has been performing these types of investigations for years, and we are serious about this commitment," Hampton added. "We will continue to work with other agencies in the District and the federal government to ensure that these kinds of criminal acts do not happen under our watch."

Residents or businesses of the District of Columbia that wish to report fraud or scams are encouraged to contact either Stephen Perry, director, DISB Enforcement and Investigation Bureau, at (202) 727-1565 or Stephen.Perry@dc.gov; or Gregory W. Marsillo, assistant director, DISB Enforcement and Investigation Bureau, at (202) 727-1564 or Gregory.Marsillo@dc.gov.

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