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New Martinsville’s Budget Finance Victims Sought

NEW MARTINSVILLE — Wetzel County Prosecutor Timothy Haught is encouraging victims of what he believes is the largest Ponzi scheme in West Virginia’s history to tell their stories to the federal judge who will sentence the woman behind it.

Donna Brown, 65, of Clarington — the former owner of Budget Finance in New Martinsville — officially pleaded guilty in federal court on Monday to mail fraud, wire fraud, and money laundering. Benjamin Glassman, U.S. attorney for the Southern District of Ohio, announced the plea agreement earlier this month.

Glassman prosecuted the case because an employee of the U.S. Attorney’s Office for the Northern District of West Virginia reportedly was among Brown’s victims.

On each count, Brown faces a maximum of 20 years in prison, a $250,000 fine, three years of supervised release and restitution to victims.

U.S. District Judge Frederick P. Stamp Jr. will sentence Brown at a future hearing. According to Haught, Brown will be sentenced according to federal sentencing guidelines, but Stamp can deviate up or down from those guidelines.

“He is not bound by those,” Haught said.

Haught said approximately 25 victims showed up in federal court for Brown’s plea, but there could be as many as 800 victims in the case. The scheme, in which Brown’s company promised investors annual returns of 8-12 percent and paid those returns with investments from subsequent clients, cost victims anywhere between $9.5 million and $25 million, according to officials.

Stamp entered an order after Brown’s plea regarding how victims could let their voices be heard. According to the order, all individuals who believe they are victims of Brown must notify the court by Jan. 17 if they wish to be heard at the sentencing hearing, and must “briefly explain why they are a crime victim and what generally they wish to say at the hearing.”

Also, if the victims wish to appear through counsel, their counsel will be responsible for submitting the notification.

The order states the court may limit the number of speakers if multiple victims wish to make similar points to avoid prolonging the hearing.

Victims may also submit written statements by Jan. 17.

The order notes victim statements will be available to the court, to the probation officer assigned to the case and to counsel for the parties.

Notifications of a desire to appear, and all written victim statements, must be filed with Cheryl Dean Riley, Clerk of Court, ATTN: Kim Criswell P.O. Box 471 Wheeling, WV 26003.

Copies must also be mailed to United States Probation Office, ATTN: Leslie A. Stocking, P.O. Box 248, Wheeling, WV 26003; Daniel A. Brown, Assistant United States Attorney, United States Attorney’s Office, 303 Marconi Boulevard, Suite 200, Columbus, OH 43215; and to Bryan R. Faller, Esq., Porter, Wright, Morris, & Arthur, LLP, 41 South High Street, Columbus, Ohio, 43215.

Haught said Stamp has given victims a procedure to comment because “the presentence investigation report is being prepared right now.”

“He gives a deadline of Jan. 17, but what I’m trying to get out to people is that if they want to comment, if they are a victim, I urge them to comment. … It’s important that they do, but they need to do it according to this order.”

Haught noted Brown’s actions completely destroyed some of her victims’ lives, including many senior citizens who lost their entire life’s savings. He said hearing some of their stories almost made him physically ill.

“This is probably the biggest Ponzi scheme in West Virginia history. … This is the most egregious property crime I’ve ever witnessed,” he said. “She preyed on these people.”

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