Railroad Child Disability Payments Major Theft – But Minor Sentence: Probation
Scroll down to see the documents and listen to rare federal court audio of the case
Quarter Million Dollar Big Northern Michigan Railroad Ripoff: June Ann McClure gets probation in huge railroad child disability program three-decade scheme in which she stole nearly 250 thousand dollars
Owner, News Director
906-273-2433
(Bay City, MI) – A Flint, MI woman has received a slap on the wrist from a federal judge after pleading guilty to “theft of government funds” in a northern Michigan courtroom as the mastermind of a three-decade scheme that federal prosecutors say ripped off about a quarter of a million dollars in disability annuity payments for children of railroad workers.
In a quiet sentencing that was not reported by the media, 58-year-old June Ann McClure of Flint, MI could have received up to 10 years in federal prison and sentencing guidelines put her estimated prison time at 12 to 18 months, but instead was given two-years probation under a plea agreement with federal prosecutors.
Oddly, the “date of imposition of judgment” was listed as July 14, 2016 by U.S. District Court Judge Terrence G. Berg but the federal paperwork on the “judgment” was not filed for public viewing until August 2, 2016. In fact, the sentencing apparently escaped the notice of all the Michigan media despite the amount of money stolen.
When a person admits their crime and takes full responsibility and cooperates with federal prosecutors the cases are often dealt with leniency.
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Editors note about the otherwise tough judge in this case:
Judge Berg was shot in the leg outside his Detroit home in March 2015 during an armed robbery – however he was not able to positively identify the only suspect – a 23-year-old man who was found not guilty of shooting the judge in May of this year – but was convicted in connection with a related crime spree.
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Under the “Rule 11” 24-page plea agreement, McClure waived indictment by a federal grand jury and pleaded guilty on March 17, 2016 to a one-count felony information.
McClure stole nearly $248,000 of benefit payments, according to the plea agreement. And while she must make restitution, court records indicate it will be at the molasses slow rate of $75 per month.
McClure can not “unlawfully possess a controlled substance” and “shall refrain from any unlawful use of a controlled substance,” the judge ruled as part of sentencing. The court suspended its order that McClure submit to drug tests because she “poses a low risk of future substance abuse.”
Federal documents state the crimes took place inside Genesee County in Flint, MI
June Ann McClure is accused of theft of government money for stealing cash between June 13, 1986 through Oct. 31, 2014 involving “money from the U.S. Railroad Retirement Board (RRB), a department or agency of the United States,” according to federal charging and arrest related documents.
“Namely, the U.S. Railroad Retirement Board Child Disability Payments to which she knew she was not entitled,” the federal felony criminal complaint states.
On Nov. 26, 1984, McClure “applied for and started receiving Railroad Retirement Board Child Disability payments” from the U.S. RRB
“McClure had a continuous obligation to report if she married and if she performed any type of work or had any earnings,” the plea agreement states. “McClure was aware that if she married, or returned to work and held a job, and accurately reported it, her entitlement to child disability annuity payments would end.”
On June 13, 1986 McClure married “but she failed to report it to the RRB,” the plea agreement states. “Had she reported it, her child disability annuity payments would have stopped on the first day of the month during which she got married.”
“During the years of 1992 through 1998, 2005 through 2007, and 2012” McClure “performed work and obtained earnings, but she failed to report them to the RRB,” the plea agreement explains. Between June 1, 1986 when she got married until October 31, 2014, “when her crime was discovered and payments ceased” McClure “knowingly received and converted to her own use” and “deprive the RRB of $247,971.62 “worth of RRB child disability annuity benefits to which she knew she was not entitled.”
She was ordered to stay away from casinos.
Federal prosecutors noted that McClure fully cooperated with the investigation and the plea agreement forgoes the cost of an expensive trial in federal court.
Until the debt is repair, McClure “shall report promptly all windfalls, such as inheritances and lottery winnings of $500 or more” to her federal probation officer.
In June 2013, McClure received a 30-day jail sentence and a $275 fine for driving with a suspended license, the plea agreement notes.
The charges were filed on February 9, 2016 in the U.S. District Court for the Eastern District of Michigan, Southern Division.
McClure “knowingly and willingly stole and converted to her own use – or the use of another – money” of the U.S RRB headquartered in Chicago, federal prosecutors say.
june-mcclure-rule-11-plea-agreement-3-17-16
june-mcclure-arraignment-3-22-16
june-mcclure-acknowledgment-of-criminal-information-3-17-16
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Federal court audio file of June McClure
According to Wikipedia:
The U.S. Railroad Retirement Board (RRB) is an independent agency in the executive branch of the United States government created in 1935 to administer a social insurance program providing retirement benefits to the country’s railroad workers.
The RRB serves U.S. railroad workers and their families, and administers retirement, survivor, unemployment, and sickness benefits. Consequently, railroad workers do not participate in the United States Social Security program.
The RRB’s headquarters are in Chicago, Illinois, with field offices throughout the country.
Related links and info:
U.S. District Court Judge Terrence G. Berg
https://www.mied.uscourts.gov/index.cfm?pageFunction=chambers&judgeid=37
https://en.wikipedia.org/wiki/Terrence_G._Berg
http://www.freep.com/story/news/2016/05/24/jury-finds-suspect-not-guilty-shooting-judge/84853760/
U.S. Magistrate Judge Stephanie Dawkins Davis
https://www.mied.uscourts.gov/index.cfm?pageFunction=chambers&judgeid=30
https://www.mied.uscourts.gov/PDFFIles/PressRelease101515.pdf
https://www.linkedin.com/in/stephanie-dawkins-davis-3aa65087
https://www.justice.gov/usao-edmi/office-moves-us-attorney-s-office
Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan
https://www.justice.gov/usao/district/edmi
https://en.wikipedia.org/wiki/Barbara_L._McQuade
https://law.udmercy.edu/udm/index.php/30-news/news-archive/461-barbara-l-mcquade
http://www.investigativeproject.org/documents/case_docs/3022.pdf
Asst. U.S. Attorney Anca I. Pop (P70032)
https://fbamich.org/wp-content/uploads/2015/02/Spring-2013-FBA-Newsletter.pdf
http://www.michigansthumb.com/news/article/Former-workermisappropriates-postal-funds-7289395.php
Asst. U.S. Attorney Anthony P. Vance
Asst. U.S. Attorney Craig F. Wininger (P57058)
101 First St., Suite 200
Bay City, MI 48708
909-895-5712
Defense Attorney Sarah L. Ellis
http://www.davisonlegal.com/index-1.html
https://www.facebook.com/davisonlegal
Other crimes against the U.S. RRB/and other related offenses
U.S. Department of Justice/U.S. Attorney’s Office for the Southern District of New York
For Immediate Release/Friday, April 4, 2014
Former U.S. Railroad Retirement Board Representative Sentenced In Manhattan Federal Court To Five Years In Prison For Her Role In LIRR Fraud Scheme
https://www.rrb.gov/opa/agency_overview.asp
https://www.dol.gov/olms/regs/compliance/enforce_2012.htm
https://www.dol.gov/olms/regs/compliance/enforce_2013.htm
https://www.dol.gov/olms/regs/compliance/enforce_2014.htm
https://www.dol.gov/olms/regs/compliance/enforce_2015.htm
https://www.dol.gov/olms/regs/compliance/enforce_2016.htm
U.S. Railroad Retirement Board Child Disability Payments
https://www.rrb.gov/pdf/PandS/RB-19a.pdf
https://www.rrb.gov/forms/opa/ib2/ib2_ret.asp
https://www.rrb.gov/forms/opa/ib2/ib2_ann_components.asp
https://www.rrb.gov/general/handbook/chapter2.asp
http://benefitslink.com/modperl/qa.cgi?db=qa_railroad_retirement
http://benefitslink.com/m/qa.cgi?db=qa_railroad_retirement&n=1184
http://benefitslink.com/m/qa.cgi?db=qa_railroad_retirement&n=1157
U.S. Railroad Retirement Board
https://en.wikipedia.org/wiki/Railroad_Retirement_Board
http://www.archives.gov/research/guide-fed-records/groups/184.html
https://www.ssa.gov/policy/docs/ssb/v68n2/v68n2p41.html
http://www.up.com/employee/retirees/benefits/rrb_benefits/
http://www.feedblitz.com/f/?Sub=554795
U.S. Railroad Retirement Board
844 North Rush Street
Chicago IL, 60611-1275
877-772-5772 (Toll free)
312-751-4701 (TTY)
312-751-4300 (Directory)
Office of Inspector General Fraud, Waste, and Abuse Hotline
https://www.rrb.gov/OIG/hotline.asp
https://www.rrb.gov/pdf/oig/OnlineComplaint.pdf
If you believe someone is illegally receiving Railroad Retirement Board (RRB) benefits or you wish to report or discuss any suspected misconduct relating to the RRB, its programs or employees, please contact the Office of Inspector General (OIG).
The OIG encourages individuals who are reporting fraud or misconduct to provide their contact information so that we may obtain additional information if necessary. If you choose to remain anonymous, the absence of your contact information may limit our ability to conduct a complete investigation.
In accordance with the Inspector General Act of 1978, as amended, OIG will keep identifying source information confidential unless such disclosure is unavoidable during the course of the investigation. However, if you wish to provide information without disclosing your identity you may do so utilizing any of the methods of contacting us that are listed above.
Report U.S. RRB Fraud:
1-800-772-4258
Weekdays 8 a.m. – 4:30 p.m. CST Excludes Federal Holidays
RRB-OIG Hotline Officer
844 North Rush Street, 4th Floor
Chicago, IL 60611-1275
(312) 751-4342 (fax)
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18 U.S. Code § 641 Theft of Government Money
https://www.law.cornell.edu/uscode/text/18/641
http://www3.ce9.uscourts.gov/jury-instructions/node/497
https://www.wklaw.com/stealing-government-property/
https://www.gpo.gov/fdsys/granule/USCODE-2011-title18/USCODE-2011-title18-partI-chap31-sec641
Rule 11 Federal Plea Agreements: 623. Pleas—Federal Rule of Criminal Procedure 11
https://www.justice.gov/usam/criminal-resource-manual-623-pleas-federal-rule-criminal-procedure-11
https://www.law.cornell.edu/rules/frcrmp/rule_11
https://www.justice.gov/file/507506/download
http://finchmccranie.com/table-of-contents-3/v-plea-bargaining/a-plea-bargaining-and-rule-11/
https://www.justice.gov/usam/criminal-resource-manual-623-pleas-federal-rule-criminal-procedure-11
Railroad info:
https://www.rrb.gov/blaw/bcd/bcd04-64.html
Upper Peninsula Breaking News by Greg Peterson 