United States Attorney Joseph A. Pavone announced today that Lisa Geraldine Gray, of Delmar, pled guilty before United States District Judge Lawrence E. Kahn to bank fraud and tax charges. Gray, age 39, admitted that she made false statements to a federally insured financial institution and filed false claims with the U.S. Department of the Treasury, Internal Revenue Service. She faces a total sentence of up to thirty-five (35) years imprisonment, a fine of $1,250,000.00 or both, plus restitution. Sentencing was set for Tuesday, February 4, 2003 at 11:30 a.m. in Albany.

The defendant admitted that she used the name Lisa Simpson, as well as a false social security number, employer and gross monthly income, in an application that she submitted on or about October 19, 1990 through Quaker Son Development to Key Bank for a mortgage in the amount of approximately $69,400 for the purchase of real property located at 84 Lark Street in Albany. On or about October 4, 1996, she submitted another application containing similar false information through Island Mortgage Network to Wells Fargo Bank for a mortgage in the amount of approximately $128,446 for the purchase of real property located at 816 New Scotland Avenue in Albany. The total loss to Key Bank following resale of the Lark Street property was approximately $26,980.74, and the total loss to Wells Fargo Bank following resale of the New Scotland Avenue property was approximately $14,721.20.

According to the Factual Basis admitted by the defendant at the entry of her guilty pleas, on or about March 28, 1998, she submitted a false and fraudulent U.S. individual income tax return, Form 1040PC, in the false name of Lisa Simpson for the calendar year 1997, in which she sought a refund in the amount of $3,204.00. The defendant admitted that, as part of the same course of conduct and common scheme or plan, she also submitted fraudulent federal income tax returns in the Lisa Simpson name for calendar years 1994, 1995 and 1996, as well as fraudulent returns in the name Darriel Graham for calendar years 1994, 1995 and 1996, and in the name of her sister, Cheryl Rogers, for the years 1994, 1995, 1996, 1997, 1998 and 1999. The defendant admitted that, in addition to using the false Lisa Simpson name, the returns that she filed in that name used fictitious social security numbers, dependents and Form W-2s, and the defendant had no right to the refunds sought thereby. Similarly, the defendant admitted that the returns she filed in the Graham name were false and fraudulent in that they were done using another person's name, without his knowledge or permission, with fictitious social security numbers, dependents and Form W-2s, and she had no right to the refunds sought thereby. Finally, the defendant admitted that the returns that she filed in the Rogers name were filed without the knowledge or permission of her sister, using fictitious dependents and Form W-2s, and she had no right to the refunds sought thereby The total amount claimed by the defendant from the Internal Revenue Service through the scheme was approximately $38,165.00, of which she admitted receiving refund checks totaling approximately $34,367.00.

The case was jointly investigated by the Criminal Investigation Division of the Internal Revenue Service and the Albany Division of the Federal Bureau of Investigation. It is being prosecuted by the United States Attorney's Office for the Northern District of New York.

The information contained in this Press Release was derived exclusively from the public record in this case, including the Information, the Plea Agreement, and the proceedings before the Court.

CONTACT:   Assistant U.S. Attorney Robert P. Storch
                       518-431-0247