Kenyan who scammed states gets 3 years [The Charleston Gazette, W.Va.]

Aug. 31--CHARLESTON, W.Va. --

A Kenyan woman who did most of the legwork in an international scam that targeted $3.34 million from several state governments, including West Virginia, was sentenced Tuesday in federal court to three years in prison.

In December, Angella Chegge-Kraszeski, 34, of Raleigh, N.C., pleaded guilty to money laundering as part of a scheme that rerouted a $919,916 payment from West Virginia intended for a legitimate vendor in March 2009.

With the help of five other Kenyan nationals living in Minnesota, Chegge-Kraszeski wired more than $772,000 to bank accounts in Kenya. Authorities caught on to the scam before other money could be diverted to offshore accounts.

Following instructions from as-yet unidentified handlers in Kenya, Chegge-Kraszeski set up dummy corporations and bank accounts with names very similar to real vendors for state governments.

She then mailed paperwork supplied by her handlers to the governments, asking them to stop sending checks to the real vendors, and make electronic deposits directly into the fake bank accounts.

"It is fair to say that you were the face of the conspiracy in the United States, at least so far as it was successful," U.S. District Judge John T. Copenhaver Jr. told her.

Chegge-Kraszeski had faced a prison term more than twice as long for her role in the scheme, but Copenhaver took her cooperation with investigators into consideration.

Without information provided by Chegge-Kraszeski, her five co-conspirators in Minnesota could not have been prosecuted, said Assistant U.S. Attorney Susan Robinson.

The ringleaders in Kenya put Chegge-Kraszeski in touch with Robert Otiso, 36, of Elk River, Minn., whom she only knew as "Robe," after banks in North Carolina wouldn't let her open dummy accounts with only a fake South African passport under the name Christina Ann Clay.

Otiso recruited Michael "Mikie" Ochenge, 33, of Lakeville, Minn., who in turn recruited Paramena Shikenda, who knew someone who worked at a local bank, which would make it easier to set up the accounts and wire money to Kenya without attracting suspicion.

Ochenge also involved Collins K. Masese, 21, of St. Paul, Minn., and Albert E. Gunga, 31, of Chanhassen, Minn., to help him launder $70,000 in cashiers checks that represented payment for his involvement.

Within the last two weeks, Copenhaver has sentenced Otiso, Shikanda and Ochenge to 72, 46 and 48 months in prison, respectively. Masese and Gunga received short sentences, which they have effectively served with the time they have already spent in custody.

All of the defendants, including Chegge-Kraszeski, face likely deportation once they have served their prison terms.

Chegge-Kraszeski's attorney, U.S. Public Defender Mary Lou Newberger, said that her client's most lasting punishment will be the effect of her deportation on her family.

Her 15-year-old son had been approved for a visa, which has since been revoked, and her husband will remain in North Carolina.

"In a very practical sense, it means the end of her marriage. These are very real consequences," she said.

In a brief statement to the court, Chegge-Kraszeski wept as she apologized to the court and to the state of West Virginia.

"This was my first time ever being in West Virginia, and these are the circumstances," she said. "I have brought so much shame, so much shame."

Chegge-Kraszeski has been in custody since May 2009, leaving roughly 20 months left on her sentence.

The convictions represented a multi-agency effort that included investigators from the U.S. Secret Service, Internal Revenue Service, U.S. Postal Inspection Service, U.S. Immigration and Customs Enforcement, and the West Virginia Commission on Special Investigations.

"Today represents justice for our state's taxpayers. Money taken from the public treasury is money not available for schools, roads, or senior services. That's why this case is one of my top priorities," U.S. Attorney Booth Goodwin said in a prepared statement.

"This defendant's sentencing represents a major milestone in the case. But we are not finished. We will continue to pursue more of the criminals who helped defraud the state."

Other officials praised the joint effort.

"As demonstrated in this case, joint law enforcement is vital to thoroughly investigating fraud schemes in multiple jurisdictions," added W.B. Fluharty, Supervisory Postal Inspector for West Virginia.

"The United States Postal Inspection Service is committed to continued collaboration between our federal and state partners to vigorously investigate these crimes."

"Sadly, the honest taxpayer is harmed when fraud such as this is committed," said Timothy Marsh, of the IRS's criminal division, Pittsburgh Field Office.

"The prosecution of these subjects should serve as a strong warning that tough punishment awaits someone who may decide to embark on a similar fraudulent journey. I commend the investigative team for bringing this investigation to a successful completion."

Reach Andrew Clevenger at [email protected] or 304-348-1723.

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Copyright (c) 2010, The Charleston Gazette, W.Va.

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