Staff Reports
Corona – A Corona woman, who is already charged with a $15 million bank and bankruptcy fraud, was arrested on Tues., July 1, on a new charge.
According to a news release from the United States Attorney’s Office, Carolyn Marie Jones, 51, of Corona, Chief Executive Officer of a high-end denim jean company, was arrested by Special Agents with the United States Secret Service and the Internal Revenue Service pursuant to a criminal complaint issued on June 30 by a federal judge.
According to the criminal complaint, which includes wire fraud, Jones scammed two Georgia men in an investment scheme. The complaint states that Jones convinced the men to invest with her, but spent the money on her own personal expenses. Jones, who was out on bond pending a September 23 trial in the bank and bankruptcy fraud case, was prohibited from soliciting money from investors while awaiting the trial.
According to the 19-count indictment returned by a 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, as well as providing the bank with a Social Security number that belonged to someone else. Jones also hid a previous bankruptcy and felony record from the bank. The indictment further states that 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 489 years in federal prison on the bank and bankruptcy fraud indictment. Jones also faces a maximum statutory sentence of 20 years on the wire fraud complaint.
The charges in the complaint and indictment are the results of an investigation conducted by the United States Secret Service and the Internal Revenue Service. The U.S. Attorney’s Office states that a complaint and an indictment contain allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
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