Former Okawville man pleads guilty to defrauding Belleville school, churches [Belleville News-Democrat, Ill.]

Nov. 28--A man was convicted Monday in federal court of defrauding schools, churches and community organizations in a scheme involving leased copiers.

Kevin E. Welch, 49, formerly of Okawville and currently of Altamont, pleaded guilty to two counts of mail fraud and to one count of engaging in a fraudulent financial transaction involving more than $10,000, according to the United States Attorney's office.

Welch faces up to 50 years in prison and a fine of up to $750,000. He is scheduled to be sentenced March 16.

Welch operated a Ponzi scheme involving the leasing of copiers, prosecutors said. In January 2010, Governor French Academy in Belleville won a $1.2 million verdict against Welch after he took copy machine lease payments from the private school and pocketed the proceeds, plus led school leaders to believe their leases had been terminated when they had not.

The school lost nearly $500,000 in machines and lease payments as a result. It was given a lien against Welch's property.

Governor French head administrator Philip Paeltz said he was glad Welch will be penalized for the harm he has caused but wishes someone would have stepped forward years ago when he began committing fraud. The indictment states the fraud started in 2001.

"We think he ought to be put away a long time," Paeltz said.

The school has never seen any money from the civil judgment, Paeltz said. Insurance covered about $30,000 in the school's losses, he said.

Welch's has said his finances had collapsed by the time he lost the civil lawsuit and has been represented by public defenders for his criminal case.

Welch could not be reached for comment. He is currently free on $10,000 bail, and was allowed to travel to Atlanta, Ga., last week in order to spend the Thanksgiving holiday with his fiancee's parents.

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