{Charleston, West Virginia}...Deborah Farmer, 47, formerly of Winfield, the admitted ringleader of a scheme that defrauded American Electric Power Co. out of nearly half a million dollars, was sentenced Monday to three years in federal prison and three years probation after leaving prison. Farmer was ordered to report to federal custody October 5th. Also sentenced Monday was Freda Bradshaw, 48, of Pliny, who will serve a six-month prison sentence followed by six months home confinement and Julia Washington, 45, of Charleston, who will serve two years in federal prison and three years probation. The three women were property damage adjusters with AEP responsible for investigating damage claims made by third parties and negotiating settlements. From February 2009 to at least March 2010, Farmer recruited others to submit false claims, which she then approved. The three were ordered to pay restitution in the amount of $200 to $300 a month. Assistant Prosecutor Erik Goes says the utility's loss in fraudulent checks was $558,412, but AEP representative Dan Fassio says the company's loss was much higher because of the cost of investigation and legal fees. The company has filed civil lawsuits against many of the indicted individuals, and some others who were not charged, in hopes of recovering some of its losses.Monday, August 27, 2012
Former AEP Employees Sentenced
{Charleston, West Virginia}...Deborah Farmer, 47, formerly of Winfield, the admitted ringleader of a scheme that defrauded American Electric Power Co. out of nearly half a million dollars, was sentenced Monday to three years in federal prison and three years probation after leaving prison. Farmer was ordered to report to federal custody October 5th. Also sentenced Monday was Freda Bradshaw, 48, of Pliny, who will serve a six-month prison sentence followed by six months home confinement and Julia Washington, 45, of Charleston, who will serve two years in federal prison and three years probation. The three women were property damage adjusters with AEP responsible for investigating damage claims made by third parties and negotiating settlements. From February 2009 to at least March 2010, Farmer recruited others to submit false claims, which she then approved. The three were ordered to pay restitution in the amount of $200 to $300 a month. Assistant Prosecutor Erik Goes says the utility's loss in fraudulent checks was $558,412, but AEP representative Dan Fassio says the company's loss was much higher because of the cost of investigation and legal fees. The company has filed civil lawsuits against many of the indicted individuals, and some others who were not charged, in hopes of recovering some of its losses.