ALBUQUERQUE,
N.M. – Susan K. Harris, 74, and William S. Harris, 60, both of
Albuquerque, were sentenced today in federal court for conspiracy to
defraud the United States and other financial crimes committed in
connection with the operation of Ayudando Guardians, Inc., a non-profit
corporation that previously provided guardianship, conservatorship and
financial management to hundreds of people with special needs.
Susan Harris was sentenced to 47 years in prison,
followed by three years of supervised release. William Harris was
sentenced to 15 years in prison, followed by three years of supervised
release. Both will be required to pay the entire amount of stolen funds
as restitution to the victims.
A superseding indictment filed on Dec. 5, 2017,
charged Susan Harris, William Harris, Sharon A. Moore, 64, and Susan
Harris’ son, Craig M. Young, 53, with various financial crimes,
including conspiracy to defraud the United States, mail fraud,
aggravated identity theft and money laundering.
Susan Harris pleaded guilty on July 11, 2019, to
conspiracy, mail fraud, aggravated identity theft, money laundering and
conspiracy to commit money laundering. William Harris pleaded guilty on
June 25, 2019, to conspiracy to defraud the United States and to commit
money laundering. Both Susan Harris and William Harris were originally
scheduled to be sentenced on March 2, 2020, but failed to appear for
their sentencing hearing. A bench warrant was issued for their arrest
and the U.S. Marshals Service arrested them in Shawnee, Oklahoma, on
April 15, 2020, after they fled New Mexico.
According to their plea agreements and other court
records, Susan Harris acted as president and was the 95-percent owner
of Ayudando, while Moore acted as chief financial officer and was a
five-percent owner. They engaged in a pattern of criminal conduct from
November 2006 to July 2017 that included unlawfully transferring money
from client accounts to a comingled account without any client-based
justification. They wrote and endorsed numerous checks, often of more
than $10,000, from these comingled accounts to themselves, family
members, cash and other parties where payment would benefit their
families.
Susan Harris took steps to maintain Ayudando’s
appearance of legitimacy, including submitting a proposal to the New
Mexico Office of Guardianship that contained numerous false
representations, including a false claim that Young was a nationally
certified guardian at the time of the submission.
William Harris, who worked as a guardian, admitted
that he knew that Moore was siphoning payments to clients from the
Department of Veterans Affairs and Social Security Administration and
using the money to benefit herself, Harris, and their
co-conspirators. Harris specifically admitted receiving, endorsing, and
depositing dozens of checks drawn on Ayudando accounts for his own
personal benefit. Harris admitted to his involvement in a money
laundering scheme, using an Ayudando corporate credit card for personal
expenses, knowing that it would be paid for with client money. He also
admitted his role in a loan application for the stated purpose of
expanding the Ayudando business with the actual intent of using the
money to “pay back” clients whose money had been taken without
authorization.
The stolen funds were used to fund an extravagant
lifestyle, including the purchases of homes, vehicles, luxury RVs and
cruises, as well as a private box at “the Pit” at the University of New
Mexico. The stolen funds were also used to pay for more than $4.4
million in American Express charges incurred by the defendants and their
families.
“The sentences that the defendants have received
today are just, and the defendants are fully deserving of them,” said
Fred J. Federici, Acting U.S. Attorney for the District of New Mexico.
“The defendants’ conduct in preying upon individuals with special needs,
who they were entrusted to protect, was both loathsome and
contemptible. We hope that these sentences serve as a warning to others
that we will seek to hold accountable anyone who chooses to violate
federal law by abusing any similar position of trust for personal
enrichment.”
“Taking advantage of disabled veterans and other
vulnerable Americans deserves a harsh penalty, especially when those
entrusted with their finances instead use the money for vacations and
other expensive perks,” said Raul Bujanda, Special Agent in Charge of
the FBI Albuquerque Field Office. “The FBI will never stop trying to
hold such criminals accountable and making sure their victims get
justice.”
“This final phase of the investigation will
hopefully give some closure to the many victims who have suffered as a
result of the selfish acts of the defendants,” said Sonya K. Chavez,
United States Marshal for the District of New Mexico. “We at the United
States Marshals Service will continue to work diligently with our
partners to protect the citizens of New Mexico, particularly those who
are most vulnerable.”
“The criminal actions by these defendants were
truly brazen and egregious,” stated IRS - Criminal Investigation Special
Agent in Charge Albert Childress. “Instead of helping people who placed
their trust in them, the defendants were greedy and helped themselves
to their clients’ money. They must now pay the consequences for their
bad deeds.”
“Today's sentencing reflects the egregious crimes
committed by the defendants, who not only violated the public’s trust
but also the trust of a vulnerable population who relied upon them to
manage their benefits. We will continue to join our law enforcement
partners in investigating organizations and individuals who misuse
Social Security benefits that they agreed to manage on behalf of
beneficiaries,” said Adam Schneider, Special Agent-in-Charge of the
Social Security Administration Office of the Inspector General, Dallas
Field Division. “I thank our law enforcement partners for their
outstanding investigative work and the District of New Mexico U.S.
Attorney’s Office for their efforts in bringing these individuals to
justice.”
“Criminal acts by would-be fiduciaries are most
heinous because they violate veterans’ trust and put in jeopardy the
benefits on which they are dependent,” said Special Agent in Charge
Rebeccalynn Staples, Veterans Affairs, Office of Inspector General.
“This sentence should send a clear message that the VA OIG will continue
to work with our law enforcement partners to ferret out those who would
defraud VA and steal the benefits of deserving veterans.”
Young pleaded guilty on Nov. 12, 2019, and was
sentenced on June 11, 2020, to five years and 11 months in prison,
followed by three years of supervised release. Young was ordered to pay
approximately $6.8 million in restitution to the victims of the fraud
scheme.
Moore pleaded guilty on July 11, 2019, and was
sentenced on March 2, 2020, to 20 years in prison, followed by three
years of supervised release. Moore was ordered to pay the entire amount
of stolen funds as restitution to the victims.
The Albuquerque Field Office of the FBI and the
Phoenix Field Office of IRS Criminal Investigation conducted the
investigation with the assistance of the Complex Assets Unit and the
U.S. Marshals Service, the Criminal Investigations Division of the
Department of Veterans Affairs Office of Inspector General, and the
Dallas Field Division of the Social Security Administration Office of
Inspector General. Assistant U.S. Attorneys Jeremy Peña and Brandon L.
Fyffe prosecuted the case.
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