Monday, July 28, 2014
PLACERVILLE, CALIFORNIA
99 CENTS

Foresthill man pleads guilty to Raley’s fraud

By
From page A3 | May 03, 2013 |

A Foresthill man pleaded guilty in federal court Tuesday on charges of conspiracy to commit mail and wire fraud.

Jason Allen Smith, 47, schemed to defraud Raley’s Family of Fine Stores, U.S. Attorney Benjamin B. Wagner announced in a press release. A former contract employee, Smith conspired with Raley’s former Director of Advertising David John Magana; Martin Steward Cullenward, 60, of Cool; and others.

Smith, the press release stated, took part in two of Magana’s fraud schemes. In total, Magana’s schemes cost Raley’s more than $2.5 million. Both Cullenward and Magana have previously pleaded guilty and an investigation is ongoing.

In order to receive the funds, the plea agreement stated, Smith used Advantage Paper Inc., a company he legally created prior to the fraud scheme.

Smith and Magana used the company to sell paper to Raley’s at an inflated price. Proceeds were placed in the company’s bank account and split between the two men, who would occasionally meet to discuss how much money Raley’s would ultimately pay for the paper. Smith would also pay Magana in cash or pay the other man’s bills.

Magana would also allow Smith and Cullenward to resell some of the paper not used by Raley’s, selling for it a fraction of the price Raley’s paid. Proceeds went to Smith and Cullenward with kickbacks to Magana.

U.S. District Judge John A. Mendez is scheduled to sentence Smith on Sept. 10. Smith faces a maximum of 20 years in prison; a $250,000 fine or twice the gross gain or loss, whichever is greater; and three years of supervised release.

This case was investigated by the FBI and the IRS’ Criminal Investigation division. Assistant U.S. Attorney Michael M. Beckwith prosecuted the case.

Comments

comments

.

News

 
County’s chief lawyer: No Brown Act violation

By Chris Daley | From Page: A1

General Plan workshop today

By Chris Daley | From Page: A1

 
Two growth control initiatives get green light

By Dawn Hodson | From Page: A1

Sand Fire burns more than 4,000 acres

By Dawn Hodson | From Page: A1, 1 Comment | Gallery

 
Fatal accident in Camino

By Cole Mayer | From Page: A1 | Gallery

Agricultural Crop and Livestock Report released

By Ross Branch | From Page: A3

 
35 people displaced in Tahoe hotel fire

By Tahoe Tribune | From Page: A3 | Gallery

.

Opinion

The balancing act: Toxic waste spreads

By Larry Weitzman | From Page: A4, 2 Comments

 
Bee-ing silly

By Mountain Democrat | From Page: A4, 1 Comment

 
.

Letters

Letter to Speaker of the House

By Letters to the Editor | From Page: A5, 1 Comment

 
GDPUD misinformation

By Letters to the Editor | From Page: A5

At the crossroads

By Letters to the Editor | From Page: A5, 1 Comment

 
Want more water?

By Letters to the Editor | From Page: A5, 1 Comment

Refugee crisis

By Letters to the Editor | From Page: A5, 1 Comment

 
.

Sports

Camp experience is ‘priceless’

By Mike Bush | From Page: A6 | Gallery

 
Speedway races cancelled

By Democrat Staff | From Page: A6

El Dorado doubles up on Pro Players

By Mike Bush | From Page: A6 | Gallery

 
Under the Scoreboard: July 26, 2014

By Democrat Staff | From Page: A6

Schedule: July 28 – Aug. 2, 2014

By Democrat Staff | From Page: A6

 
Roundup: July 26, 2014

By Democrat Staff | From Page: A6

Local spiker shines

By Democrat Staff | From Page: A7

 
Sports Scene: July 26, 2014

By Democrat Staff | From Page: A7

.

Prospecting

A beautiful day at Wakamatsu Tea and Silk Colony Farm

By Cathy Barsotti | From Page: B1 | Gallery

 
Foothill gourmet: Things get corny

By Donna Brown | From Page: B2

Bipolar Insights: From point A to point B

By Marcia Rose | From Page: B2

 
Cool time at Cowboys and Cornbread

By Democrat Staff | From Page: B2 | Gallery

As we were: Recreation district grows

By Ken Deibert | From Page: B4

 
Cantare names new director

By Cantare Chorale | From Page: B10

 
After 5 Club to meet

By Senior Day | From Page: B10

.

Essentials

Divorces

By Charlotte Sanchez-Kosa | From Page: A2Comments are off for this post

 
DUI Log: June 25-July 9

By Cole Mayer | From Page: A2

Crime Log: July 14-16

By Cole Mayer | From Page: A2

 
.

Obituaries

.

Real Estate

.

Comics

Rubes

By Contributor | From Page: A8

 
New York Times Crossword

By Contributor | From Page: A8

TV Listings

By Contributor | From Page: A8

 
Speed Bump

By Contributor | From Page: A8

American Profile Crossword

By Contributor | From Page: A8

 
Tundra

By Contributor | From Page: A8

Horoscope, Tuesday, July 29, 2014

By Contributor | From Page: A8

 
Horoscope, Monday, July 28, 2014

By Contributor | From Page: A8

Shoe

By Contributor | From Page: A8

 
Sudoku

By Contributor | From Page: A8