Charlene Corley
Encyclopedia
Charlene Corley is a former defense contractor
who was convicted in 2007 on two counts of conspiracy
. Over the course of nine years leading up to September 2006, the company owned by Corley and her sister was found to have received over 20 million dollars from the United States Department of Defense
for fraud
ulent shipping costs; in one instance, the company was paid $998,798 for shipping two 19-cent washer
s. In 2009, Corley was sentenced to six years in prison and ordered to pay $15.5 million in restitution
.
.
Among the invoices submitted by C&D Distributors were:
The scheme was discovered in September 2006. According to a Pentagon
spokesman, the system has been modified to safeguard against similar exploitation in the future.
after being approached by federal investigators. She left behind a suicide note and a check made out to the Defense Department for 4.5 million dollars.
Corley pled guilty
in August 2007 to two conspiracy charges to commit wire fraud
and money laundering
, each charge carrying a maximum sentence of twenty years. She was freed on bond until sentencing. In March 2009, she was sentenced to the minimum recommended sentence of six and a half years in federal prison. The judge rejected Corley's request to serve the time in a halfway house
. Corley was also ordered to pay $15.5 million in restitution
, at a minimum rate of $300 per month.
Corley claimed that Wooten had been more responsible for the scheme and had received more benefit. During the sentencing, Corley's attorneys asked the judge to consider Corley’s clean criminal history
and her record of community service
. They presented a video featuring eight Corley supporters, including several from Pineview Elementary School, where Corley had become a mentor to an autistic
child. The boy's mother and grandmother testified in court about their immense appreciation for the help Corley had given their family, and the mother said that she would bring her son to visit Corley wherever she went. Corley herself told the court, "I messed up really bad. I'm sorry. I'm desperately ashamed
."
Following the guilty plea, Corley's possessions stemming from the fraud became subject to seizure by the South Carolina United States Attorney
's office. Corley's spending had included, according to various news reports, at least six pieces of property including four beach homes
at Edisto Island; a collection of ten cars including a BMW
, a Lexus
, and matching Mercedes-Benz
es; expensive jewelry and vacations; five businesses, including a cookie store; and a $250,000 luxury box
at the football stadium of Clemson University
, Corley's alma mater. A prosecutor at Corley’s sentencing claimed the spending list spanned "ten pages, single-spaced."
Defense contractor
A defense contractor is a business organization or individual that provides products or services to a military department of a government. Products typically include military aircraft, ships, vehicles, weaponry, and electronic systems...
who was convicted in 2007 on two counts of conspiracy
Conspiracy (crime)
In the criminal law, a conspiracy is an agreement between two or more persons to break the law at some time in the future, and, in some cases, with at least one overt act in furtherance of that agreement...
. Over the course of nine years leading up to September 2006, the company owned by Corley and her sister was found to have received over 20 million dollars from the United States Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...
for fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...
ulent shipping costs; in one instance, the company was paid $998,798 for shipping two 19-cent washer
Washer (hardware)
A washer is a thin plate with a hole that is normally used to distribute the load of a threaded fastener, such as a screw or nut. Other uses are as a spacer, spring , wear pad, preload indicating device, locking device, and to reduce vibration...
s. In 2009, Corley was sentenced to six years in prison and ordered to pay $15.5 million in restitution
Restitution
The law of restitution is the law of gains-based recovery. It is to be contrasted with the law of compensation, which is the law of loss-based recovery. Obligations to make restitution and obligations to pay compensation are each a type of legal response to events in the real world. When a court...
.
Crime
Along with her twin sister Darlene Wooten, Corley was the co-owner of C&D Distributors, a supplier of small hardware components, plumbing fixtures and electronic equipment to the military. The company used a computerized government system that allowed shipping costs for each order to be submitted separately and automatically reimbursed. Using the system, C&D Distributors received payment from the Department of Defense on 112 fraudulent invoices, totaling 20.5 million dollars in illegitimate charges, for parts sent to priority military installations, including destinations in Iraq and AfghanistanWar in Afghanistan (2001–present)
The War in Afghanistan began on October 7, 2001, as the armed forces of the United States of America, the United Kingdom, Australia, and the Afghan United Front launched Operation Enduring Freedom...
.
Among the invoices submitted by C&D Distributors were:
- $445,640 for shipping an $8.75 elbow pipe
- $492,096 for shipping a $10.99 machine thread plug
- $403,436 for shipping six machine screwScrewA screw, or bolt, is a type of fastener characterized by a helical ridge, known as an external thread or just thread, wrapped around a cylinder. Some screw threads are designed to mate with a complementary thread, known as an internal thread, often in the form of a nut or an object that has the...
s worth a total of $59.94
The scheme was discovered in September 2006. According to a Pentagon
The Pentagon
The Pentagon is the headquarters of the United States Department of Defense, located in Arlington County, Virginia. As a symbol of the U.S. military, "the Pentagon" is often used metonymically to refer to the Department of Defense rather than the building itself.Designed by the American architect...
spokesman, the system has been modified to safeguard against similar exploitation in the future.
Aftermath
In October 2006, Darlene Wooten committed suicideSuicide
Suicide is the act of intentionally causing one's own death. Suicide is often committed out of despair or attributed to some underlying mental disorder, such as depression, bipolar disorder, schizophrenia, alcoholism, or drug abuse...
after being approached by federal investigators. She left behind a suicide note and a check made out to the Defense Department for 4.5 million dollars.
Corley pled guilty
Plea
In legal terms, a plea is simply an answer to a claim made by someone in a civil or criminal case under common law using the adversary system. Colloquially, a plea has come to mean the assertion by a criminal defendant at arraignment, or otherwise in response to a criminal charge, whether that...
in August 2007 to two conspiracy charges to commit wire fraud
Wire fraud
Mail and wire fraud is a federal crime in the United States. Together, 18 U.S.C. §§ 1341, 1343, and 1346 reach any fraudulent scheme or artifice to intentionally deprive another of property or honest services with a nexus to mail or wire communication....
and money laundering
Money laundering
Money laundering is the process of disguising illegal sources of money so that it looks like it came from legal sources. The methods by which money may be laundered are varied and can range in sophistication. Many regulatory and governmental authorities quote estimates each year for the amount...
, each charge carrying a maximum sentence of twenty years. She was freed on bond until sentencing. In March 2009, she was sentenced to the minimum recommended sentence of six and a half years in federal prison. The judge rejected Corley's request to serve the time in a halfway house
Halfway house
The purpose of a halfway house, also called a recovery house or sober house, is generally to allow people to begin the process of reintegration with society, while still providing monitoring and support; this is generally believed to reduce the risk of recidivism or relapse when compared to a...
. Corley was also ordered to pay $15.5 million in restitution
Restitution
The law of restitution is the law of gains-based recovery. It is to be contrasted with the law of compensation, which is the law of loss-based recovery. Obligations to make restitution and obligations to pay compensation are each a type of legal response to events in the real world. When a court...
, at a minimum rate of $300 per month.
Corley claimed that Wooten had been more responsible for the scheme and had received more benefit. During the sentencing, Corley's attorneys asked the judge to consider Corley’s clean criminal history
Criminal record
A criminal record is a record of a person's criminal history, generally used by potential employers, lenders etc. to assess his or her trustworthiness. The information included in a criminal record varies between countries and even between jurisdictions within a country...
and her record of community service
Community service
Community service is donated service or activity that is performed by someone or a group of people for the benefit of the public or its institutions....
. They presented a video featuring eight Corley supporters, including several from Pineview Elementary School, where Corley had become a mentor to an autistic
Autism
Autism is a disorder of neural development characterized by impaired social interaction and communication, and by restricted and repetitive behavior. These signs all begin before a child is three years old. Autism affects information processing in the brain by altering how nerve cells and their...
child. The boy's mother and grandmother testified in court about their immense appreciation for the help Corley had given their family, and the mother said that she would bring her son to visit Corley wherever she went. Corley herself told the court, "I messed up really bad. I'm sorry. I'm desperately ashamed
Shame
Shame is, variously, an affect, emotion, cognition, state, or condition. The roots of the word shame are thought to derive from an older word meaning to cover; as such, covering oneself, literally or figuratively, is a natural expression of shame....
."
Following the guilty plea, Corley's possessions stemming from the fraud became subject to seizure by the South Carolina United States Attorney
United States Attorney
United States Attorneys represent the United States federal government in United States district court and United States court of appeals. There are 93 U.S. Attorneys stationed throughout the United States, Puerto Rico, the U.S. Virgin Islands, Guam, and the Northern Mariana Islands...
's office. Corley's spending had included, according to various news reports, at least six pieces of property including four beach homes
Beach house
A beach house is a house on or near a beach, generally used as a vacation or second home for people who commute to the house on weekends or during vacation periods....
at Edisto Island; a collection of ten cars including a BMW
BMW
Bayerische Motoren Werke AG is a German automobile, motorcycle and engine manufacturing company founded in 1916. It also owns and produces the Mini marque, and is the parent company of Rolls-Royce Motor Cars. BMW produces motorcycles under BMW Motorrad and Husqvarna brands...
, a Lexus
Lexus
is the luxury vehicle division of Japanese automaker Toyota Motor Corporation. First introduced in 1989 in the United States, Lexus is now sold globally and has become Japan's largest-selling make of premium cars. The Lexus marque is marketed in over 70 countries and territories worldwide, and has...
, and matching Mercedes-Benz
Mercedes-Benz
Mercedes-Benz is a German manufacturer of automobiles, buses, coaches, and trucks. Mercedes-Benz is a division of its parent company, Daimler AG...
es; expensive jewelry and vacations; five businesses, including a cookie store; and a $250,000 luxury box
Luxury box
A Luxury box is a special seating section located within stadiums, arenas and other sporting and entertainment venues. They are typically located in the midsection of a stadium grandstand, usually providing the best views of the event...
at the football stadium of Clemson University
Clemson University
Clemson University is an American public, coeducational, land-grant, sea-grant, research university located in Clemson, South Carolina, United States....
, Corley's alma mater. A prosecutor at Corley’s sentencing claimed the spending list spanned "ten pages, single-spaced."