UNITED STATES ATTORNEY'S OFFICE EASTERN DISTRICT OF VIRGINIA ALEXANDRIA    NEWPORT NEWS    NORFOLK    RICHMOND CHUCK ROSENBERG, UNITED STATES ATTORNEY

Former Controller of United Leasing Corporation Pleads Guilty to Bank Fraud Charges and to Being a Felon in Possession of a Firearm

(Richmond, VA) – James H. Wilkins, age 42, of Mechanicsville, Virginia, pleaded guilty today to two bank fraud charges and to being a felon in possession of a firearm. On each of the bank fraud counts, Wilkins faces a maximum penalty of thirty (30) years’ imprisonment, a fine of $1,000,000, a special assessment, and five (5) years of supervised release. On the charge of being a felon in possession of a firearm, Wilkins faces a maximum penalty of ten (10) years’ imprisonment, a fine of $250,000, a special assessment, and three (3) years of supervised release. In addition, as part of his sentence, Wilkins has agreed to pay $1,231,457.12 in restitution to United Leasing Corporation and $189,546.61 to the Home Owners Association of North Myrtle Beach Golf and Tennis. Wilkins is to be sentenced on September 18, 2008 by Chief United States District Judge James R. Spencer. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia; Jennifer Smith Love, Special Agent-In-Charge, Federal Bureau of Investigation; Trip Chalkley, Hanover County Commonwealth’s Attorney; and Col. V. Stuart Cook, Sheriff, Hanover County announced the plea.

According to Court documents, the bank fraud was committed in Mechanicsville, Virginia from August 2003 through September 2006. During that time, Wilkins defrauded Wachovia Bank. Wilkins has acknowledged that he exploited his position as Controller of United Leasing Corporation (ULC) to personally enrich himself by forging and uttering without authorization ULC checks drawn on the company operating account, naming himself and others as payees on those checks, and diverting the proceeds of the scheme for his own personal use, including the purchase of multiple items of real and personal property, resulting in a loss to ULC of in excess of $1,050,839.

According to Court documents, Wilkins committed a separate bank fraud scheme in South Carolina from June 2007 through December 2007. During that time, Wilkins made various financial transactions with the intent to defraud First Federal Bank in North Myrtle Beach, South Carolina, and to obtain money within the custody and control of that financial institution by means of false and fraudulent pretenses.

It was part of the scheme to defraud that Wilkins created two entities in 2006, named “Taylor’d Properties, LLC” and “Land-Mart Equipment, Inc.” In November 2006, Wilkins purchased and operated a business called “Property Management Plus” (hereafter “PMP”) as a property management business. Wilkins used the entities “Taylor’d Properties, LLC” and “Land-Mart Equipment, Inc.” to manage assets for PMP.

In addition, Wilkins, doing business as PMP, was hired in or about June 2007 by the Home Owners Association (hereafter “HOA”) of North Myrtle Beach Golf and Tennis, and in that capacity, was given authority to write checks from HOA’s renovation account to pay the contractor, Service Tech, for invoices due for the renovation project at North Myrtle Beach Golf and Tennis. From about June 14, 2007, through and December 12, 2007, Wilkins wrote nine checks from the HOA’s account at First Federal Bank, each made payable to “Service Tech,” and signed each “James Herbert Wilkins.” These checks were not billed to Service Tech and were, in fact, not owed to Service Tech for the renovation project. Furthermore, these checks were not received by the owner of Service Tech. Wilkins deposited each of the nine checks into the BB&T business account created by and in the name of “James Herbert Wilkins dba Service Tech.” By about January 11, 2008, Wilkins had withdrawn the entire amount of $189,546.61 from the “James Herbert Wilkins dba Service Tech” account at BB&T.

On the date of his arrest in the Middle District of Florida, Wilkins was found in possession of five firearms. As a previously convicted felon, however he was legally prohibited from possessing these guns. Wilkins agreed with prosecutors to resolve his pending bank fraud charges in Virginia and South Carolina, as well as the possession of a firearm by a convicted felon charge in Florida, in one proceeding here in the Eastern District of Virginia.

The case was investigated by the Federal Bureau of Investigation, Richmond Division; and the Hanover County Sheriff’s Department. The case was prosecuted by Assistant United States Attorneys Brian L. Whisler and G. Wingate Grant.