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July 15, 2014

Corona Woman Who Ran High-End Denim Jean Company Indicted For Defrauding Investors While On Bond

Filed under: California Defense Attorney — fayarfa @ 5:04 am

LOS ANGELES – A Corona woman, who is already charged with a $15 million bank fraud and bankruptcy fraud, was indicted on Friday on new charges.  Carolyn Marie Jones, 51, of Corona, who was the Chief Executive Officer of a high-end denim jean company, was charged in an indictment returned by the grand jury late Friday afternoon.

According to the seven-count indictment returned on Friday, which charges wire fraud and contempt, Jones defrauded victims in an investment fraud scheme.  According to the indictment, Jones convinced investors to invest with her by representing that she was operating a clothing company called Premium Management and needed money to close a securities deal and for other business-related expenses.  The indictment alleges that Jones spent the money on her own personal expenses. Jones, who was on bond pending a September 23 trial in the bank and bankruptcy fraud case, was prohibited from soliciting money from investors while the trial is pending.   The new indictment also alleges that Jones failed to disclose to investors that she was under indictment and was prohibited from soliciting money.  Jones is now being held in custody pending trial.

According to the nineteen count indictment returned by a federal grand jury in September 2013, Jones was the Chief Executive Officer of Diamond Decisions, Inc., which sold denim jeans marketed under the labels of Privacywear and PRVCY Premium.  According to the indictment, Jones obtained a $15 million business line of credit from Union Bank, using fake financial statements and fake tax returns.  The indictment states that Jones gave the bank a Social Security Number that belonged to someone else.  Jones also hid from the bank that she had filed for bankruptcy previously and that she had a felony record.  According to the indictment, Jones defaulted on the $15 million loan after a year causing Union Bank to file a lawsuit in state court.  When Union Bank tried to seize the contents of the Diamond Decisions warehouse, Jones caused the company to file for bankruptcy and hid assets from the bankruptcy trustee.

Jones faces a maximum statutory sentence of 80 years on the wire fraud and contempt indictment. Jones faces a maximum statutory sentence of 489 years in federal prison on the bank and bankruptcy fraud indictment.

An indictment contains allegations that a defendant has committed a crime.  Every defendant is presumed innocent until and unless proven guilty.

The charges in the indictment are the result of an investigation conducted by the United States Secret Service and the Internal Revenue Service.

Central District of California DOJ / Release No. 14-086 / July 14, 2014

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