Monday, May 07, 2012

Government wants Peggy Newton to spend six years in prison

The sentencing hearing for former Joplin businesswoman Peggy Newton, who pleaded guilty to fraud charges, has been delayed until June 18, and when it finally occurs, the U. S. attorney is going to ask that the former co-owner of Evergreen and Amber spend close to six years in prison.

Documents filed today in U. S. District Court for the Western District of Missouri indicate that the new U. S. attorney in the case, Steven Molhenrich, says he will ask for a sentence longer than the one recommended in the probation officer in the pre-sentencing report.

That report suggested Mrs. Newton should spend 46 to 57 months in prison. That's not enough, Molhenrich says. "After reviewing all of the evidence, the government believes that the defendant should receive an additional two-level enhancement for obstruction of justice." Molhenrich recommends 57-71 months in prison.

The sentencing hearing promises to be different than the usual, according to court documents. The government anticipates putting on at least two hours of evidence, showing that Mrs. Newton embezzled more than $300,000 from her company and co-owner Diane Pine. Mrs. Newton's lawyers say the amount is only about $30,000.

Molhenrich took over the case last week after the U. S. attorney had been handling it resigned.

The following description of Mrs. Newton's crime comes from the Feb. 13 Turner Report:

The following description of Ms. Newton's crime was included in court documents:

The defendant, PEGGY S. NEWTON (hereinafter NEWTON), and Diane
Pine (Pine) were partners in Evergreen & Amber, L.L.C., an interior decorating business and retail shop dealing in the procurement and sale of dry goods, floral,furniture, household and kindred furnishings. Evergreen & Amber, L.L.C. was a Limited Liability Company organized in the State of Missouri, located in Joplin, Missouri. NEWTON and Pine were the only members of the organization.

The business was funded primarily through the use of Pine’s credit accounts and lines of credit opened by Pine in the name of Evergreen & Amber, L.L.C. Pine was the sole guarantor on each of these accounts. The business’s operational accounts were held at U.S. Bank and United Missouri Bank, both located in Joplin,Missouri. Both operational accounts were held in the name of Evergreen & Amber,
L.L.C. Both NEWTON and Pine had signature authority over the credit accounts used to fund the business, and the operational accounts at U.S. Bank and United Missouri Bank. NEWTON was authorized to write checks, incur charges, and make expenditures on these accounts for expenses related to, and for the benefit of,Evergreen & Amber, L.L.C. NEWTON was not authorized to utilize the accounts for personal expenditures, or to make purchases, conduct withdrawals, or incur
charges for any reason not related to, or for the benefit of, Evergreen & Amber,L.L.C. NEWTON also did not have permission to apply for credit, or to open any new lines of credit in Pine’s name or in the name of Evergreen & Amber, L.L.C.,without Pine’s permission.

The Scheme
From on or about September 18, 2006, through on or about June 29, 2009, in Joplin, Jasper County, in the Western District of Missouri, and elsewhere, the defendant, PEGGY S. NEWTON, devised a scheme and artifice to defraud and to obtain money and other things from Pine and Evergreen & Amber, L.L.C., by means of materially false and fraudulent pretenses, representations and promises. The scheme was as follows.

It was part of the scheme that NEWTON wrote checks drawn on the Evergreen & Amber, L.L.C., operational accounts at U.S. Bank and United Missouri
Bank to make purchases and obtain money for personal use, and to pay for items and services for her personal benefit.

It was also part of the scheme that NEWTON used Pine’s personal credit
accounts, and the credit accounts of Evergreen & Amber, L.L.C., to make purchases and obtain money for personal use, and to pay for services for her personal benefit.

Count Twelve

Specifically, on or about June 6, 2008, NEWTON used Pine’s Chase Visa
card account number ending in 5506, to charge $1,926.70 for the purchase of family portraits from Lagow Portrait Designs, Inc., in Joplin, Missouri. NEWTON did so without Pine’s knowledge or permission. NEWTON’s use of Pine’s credit card to make this purchase caused to be electronically transmitted over telephone lines in interstate commerce by means of wire communication, funds in the amount of $1,926.70, from Pine’s Chase Visa account in Palatine, Illinois, to Lagow Portrait
Designs, Inc., in Joplin, Missouri.

For relevant conduct purposes, NEWTON stipulates and agrees that she made other unauthorized purchases and expenditures using Pine’s personal and business credit cards, and the Evergreen & Amber, LLC, business accounts at U.S. Bank and United Missouri Bank. NEWTON agrees she conducted these purchases,expenditures, and withdrawals for her own personal benefit, and without Pine’s knowledge or permission. The exact amount of unauthorized expenditures NEWTON made will be determined by the Court at sentencing.

9 comments:

  1. Anonymous5:43 PM

    Only six years?

    ReplyDelete
  2. Anonymous3:27 PM

    This story has been buried by the local newspapers, including The Joplin Globe, and the local Television and Radio Channels.

    Why should Newton's get a Pass? If this was some petty Crime, the criminal's Name, Picture, and Life Story would be written up and broadcast for everyone, yet for whatever reason this news is just overlooked or bypassed - it is time that "The Truth Start Coming Out"...

    Yes, Since 1914 the Newtons have been taking advantage of people - and yes Brian and Peggy Newton, reminds us all that the "Apple Doesn't Fall Far From The Tree"...

    ReplyDelete
  3. Anonymous11:15 AM

    Buried? Not online at the Joplin Globe, this Google search limited to the Globe returns "about 252" hits, the top one for me is on this current development, filed yesterday.

    ReplyDelete
  4. Anonymous2:53 PM

    Yes - Buried, The Turner Report had this on his site - on May 07, after I sent the Joplin Globe multiple links to the The Turner Report and complained then they finally published an article on May 11.

    With limited resources The Turner Report constantly scoops The Joplin Globe - -

    The Newton Family have been part of the Joplin landscape since 1914. I would figure that this would be news since his son Brian and his Daughter-In-Law Peggy was part of this giant SCAM...

    ReplyDelete
  5. Anonymous11:50 AM

    Newton's Believe It Or Not!!!

    ** WHAT DO YOU THINK **

    Peggy and her attorney thinks she should only receive 4 to 10 months while the new US Attorney believes she should receive 57 to 71 months for her crimes.

    ** While in the Original Court Papers - Here is the Link -

    http://www.justice.gov/usao/mow/news2011/newton_indictment.pdf

    Her Husband Brian Newton which they list as (BN) uses 4 Unauthorized Checks for his own personal Bills - Why isn't Brian going to JAIL TOO....

    It was part of the scheme that NEWTON wrote approximately 393 checks drawn on
    the Evergreen & Amber, L.L.C., operational accounts at U.S. Bank and United Missouri Bank to
    make purchases and obtain money for personal use, and to pay for items and services for her
    personal benefit. Approximately four of these checks were made payable to NEWTON’s husband,
    B.N., for unauthorized reasons. At least one of these checks was issued to Commerce Bank in
    Joplin, Missouri, for the purpose of making payment on an automobile loan in B.N.’s name.

    Again, Why isn't Brian going to jail for the same Crimes as Peggy?

    ReplyDelete
  6. Anonymous9:01 AM

    I think it most important that she pay full and prompt restitution to Ms. Pine. I furthermore believe that it is at least the Brian Newton family which is fully involved in receiving "known embezzled money, and should be responsible for the restitution. I assume that their family owns a nice portion of the business, a grand home, several vehicles, in which to serve up this restitution. No one could will ever convince me that a person could spend $300,000.00 without their spouse knowing it was happening. Ms. Pine suffered great loss from this, so the best thing that the courts could do is force quick and complete restitution. JMO......

    ReplyDelete
  7. Anonymous3:34 PM

    It is Time For The Newtons To Pay Up

    Peggy Newton Filed for Personal Bankruptcy, Chapter 7, I am not for sure if Brian Newton was part of that or not, but it is a Federal Crime to File False Documents or Lie in your Bankruptcy Proceedings. So if they both Signed the Bankruptcy Documents – they both should be charged.

    I do agree any money that is owed as restitution should come from Brian and Peggy Newton’s Inheritance or whatever interests they have in Newton’s Jewelry or any other Assets that are available to cover any/all debts or restitution.

    As of 07/31/2011 the Missouri Secretary of States Office Annual Report for Newton’s Jewelry Company, states that: Leonard T. Newton is the President / Secretary / Treasurer, and that James Brian Newton is the Vice President of the Company.


    From the Turner Report…

    The allegations first came to light when Ms. Pine challenged Mrs. Newton's Chapter 7 bankruptcy filing.late last year. Bankruptcy court documents indicate Mrs. Newton claimed she owed $320,358.09 and had only $3,778.85 in assets.

    In her challenge to Mrs. Newton's bankruptcy, Ms. Pine claimed her former business partner had "engaged in a pattern of fraud and deceit." Ms. Pine described herself as primarily an absentee partner who spent most of her time working as a registered nurse in Dallas, Texas, though Joplin was her home.

    Ms. Pine said Mrs. Newton used company money for various personal reasons, including shopping sprees,


    New complaint in Peggy Newton bankruptcy

    An amended complaint in Diane Pine's challenge to Peggy Newton's bankruptcy asks that Ms. Newton not be rewarded for the alleged theft, fraud, and forgery that led to a debt of $291,041.78.

    The complaint, filed last week in U. S. Bankruptcy Court, includes the federal indictment charging Mrs. Newton, Ms. Pine's former partner in Evergreen and Amber, a downtown Joplin business, with 25 counts of fraud and forgery.

    In a response to the amended complaint, Mrs. Newton's lawyer, Norman Rouse, denied Ms. Pine's allegations and said she had filed her complaint too late.

    ReplyDelete
  8. Anonymous4:14 PM

    Why doesn't Turner report on Greg Crocker or Bobby Landis? Both Joplin business owners recently sentenced to prison. turner is a biased hack.

    ReplyDelete
  9. Anonymous8:23 AM

    Greg Crocker or Bobby Landis? Who are they? Didn't read about them in the Joplin Globe either! Hmmm must be more friends of the Globe like peggy is. Are they Joplin psuedo prominents like Peggy?

    ReplyDelete