A Port Ludlow man who is accused of
stealing as much as $280,000 from clients he served as a financial
guardian pleaded guilty in U.S. District Court in Seattle on Friday to
Social Security fraud.
Wayne Jerome
Houston, 61, owned Cross Point Services LLC, a guardianship organization
for disabled and vulnerable adults, according to a press release from
the office of U.S. Attorney Brian Moran.
As part
of his business managing the financial affairs of 15-20 clients a month,
Houston had access to the clients’ bank accounts so he could pay rent,
utilities and other bills for them. Beginning in 2010, Houston began
writing checks from his client's accounts to himself, to Cross Point
Services, or to cash, and he used ATMs to withdraw money from client
accounts for his own expenses, according to Moran's office.
He
continued withdrawing money through 2018. The amount stolen is still
under investigation, the office said, but it is estimated between
$150,000 and $280,941.
“This defendant stole from those he was supposed to
protect at least 240 separate times,” Moran said in the press
release. “He betrayed the clients who needed his help, as well as the
Kitsap County Superior Court judges who appointed him, believing he
could be trusted to make sure disabled and vulnerable adults were
protected.”
Houston targeted clients who had significant income so that the theft was less likely to be detected, the press release said.
Social Security benefits were paid into the accounts
of at least 13 clients who required a representative payee to manage
their benefits. Approximately $83,000 of what Houston is accused of
stealing was Social Security Administration benefit funds, according to
the U.S. Attorney's Office.
The charges are
punishable by up to five years in prison and a $250,000 fine, but under
the terms of the plea agreement, prosecutors will recommend no more than
40 months in prison. The judge, Ronald Leighton, is not limited by the
recommendation, however, and Houston's sentence will be determined by
the court based on the advisory Sentencing Guidelines and other
statutory factors, according to the press release.
The case was investigated by the Social Security
Administration Office of Inspector General and the Kitsap County
Sheriff’s Office.
Full Article & Source:
Port Ludlow financial guardian pleads guilty to defrauding clients
