x
Breaking News
More () »

Memphis man sentenced to 6.5 years for fraud scheme targeting nonprofit organizations

Jaime Walsh was also ordered to pay more than $200,000 in restitution to victims.
Credit: WATN

MEMPHIS, Tenn. — UPDATE 7/21/2021 - Jaime Walsh, 53, has been sentenced to 78 months in federal prison for one count of bank fraud in connection with a scheme perpetrated against over 100 entities, most of which were nonprofits. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.

According to information presented in court, between June 2013 and March 2019, Walsh defrauded various organizations including charities, churches, nonprofit environmental entities, and the Peace Corps. Walsh would, for example, make an online donation of $4500 to an organization. He would then contact the organization, claiming he intended to donate only $45, and ask for a refund of $4455. The organization would issue the requested refund and Walsh would immediately withdraw the money from his account.

Meanwhile, the original donation made by Walsh would be rejected due to insufficient funds and the targeted organization would suffer a complete loss of the refunded amount. Walsh attempted to defraud victims of $863,736.69. He succeeded in defrauding victims of $241,397.33.

On March 2, 2021, Walsh pled guilty to bank fraud.

On July 20, 2021, U.S. District Judge Mark S. Norris sentenced Walsh to 78 months in federal prison to be followed by three years supervised release. Walsh was also ordered to pay restitution to victims in the amount of $203,840.70. A money judgement for $241,397.33 was entered against Walsh.

This case was investigated by the U.S. Postal Inspection Service, Tennessee Highway Patrol, U.S. Secret Service, and the Peace Corps Office of the Inspector General.

Assistant U.S. Attorney Scott Smith prosecuted this case on behalf of the government.

---------------------------------------

6/26/2020 - Jaime Walsh, 53, has been charged in an eight-count federal indictment for multiple forms of fraud, including wire fraud, mail fraud, bank fraud, and fraudulent claims against the government. D. Michael Dunavant, U.S. Attorney announced the indictment Friday.

According to the indictment, between June of 2013 and March of 2019, Walsh carried out a scheme to defraud various organizations including charities, nonprofit entities, and the Peace Corps. Walsh’s scheme was to make an online donation to an organization, contact the organization claiming the donation amount was in error, and ask for a refund to correct the error.

For example, Walsh would make an online donation of $4500 to an organization. He would then contact the organization, claiming he intended to donate only $45, and ask for a refund of $4455. The organization would issue the requested refund and Walsh would immediately withdraw the money from his account. Meanwhile, the original donation made by Walsh would be rejected due to insufficient funds and the targeted organization would suffer a complete loss of the refunded amount.

If convicted, Walsh faces up to 20 years imprisonment followed by three years of supervised release.

U.S. Attorney D. Michael Dunavant said, "Fraudulent schemes that steal precious resources from nonprofit victims represent the very worst acts of dishonesty and betrayals of trust. We commend our federal and state law enforcement partners for their outstanding investigation in this disturbing case.”

This case was investigated by the U.S. Postal Inspection Service (USPIS), U.S. Secret Service, Tennessee Highway Patrol, and the Peace Corps Office of the Inspector General.

Assistant U.S. Attorney Scott Smith is prosecuting this case on behalf of the government.

The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.