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Investigative Reports

PRESS RELEASE:
Portland, ME November 30, 1999

Contact: James McCarthy:
Assistant U.S. Attorney
Tel.: (207) 945-0373

Former Winthrop Woman Sentenced on Federal Mail Fraud and Student Loan Fraud

Bangor, Maine: - United States Attorney Jay P. McCloskey announced that Susan L. Mounce, 52, formerly of Winthrop and currently of Albion, Maine, was sentenced to 21 months in prison, to be followed by 3 years of supervised release on one case, and 6 months in prison followed by 3 years of supervised release on the other. The sentences were imposed today in the U.S. District Court in Bangor by District Judge Morton A. Brody. Mounce was indicted in February 1999 on two indictments and pleaded guilty to all counts in both indictments in August 1999.

In the first indictment, Mounce was charged with 15 counts of mail fraud. Mounce, who was receiving AFDC (Aid to Families with Dependant Children) and Medicaid, both administered by Maine's Bureau of Family Independence (BFI) and general assistance from the Town of Winthrop, lied on the application forms for aid and reported that she was separated and did not disclose her husband's income, which resulted in her receipt of over $75,000 in the period covering May 1988-April 1995. Restitution was ordered to the Town of Winthrop and the Maine Department of Human Services in a total amount of $75,312.52.

The second indictment charged Mounce with 7 counts of mail fraud and 2 counts of student loan fraud. Mounce pleaded guilty to lying on an application form to the U.S. Department of Education for student aid when she attended Mid-State College in Augusta. The false statements were made on her 1994-1995 and 1995-1996 FAFSA (Free Application for Federal Student Aid) forms wherein Mounce represented that she was separated from her spouse and that her spouse's income earned from work was zero for 1993 and 1994. Seven checks were mailed to the school as a result of the false statements. Restitution was ordered in the amount of $6,062.00.

Mounce's husband lived in the residence and had income from his job during all of the time covered by the indictments.

United States Attorney McCloskey praised the investigative efforts of the U.S. Department of Education Office of the Inspector General and the Maine Department of Human Services Fraud Investigation and Recovery Unit and the U.S. Department of Health and Human Services Office of the Inspector General.


 
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Last Modified: 03/03/2005