A Sacramento woman is accused of cheating beneficiaries of a trust and using some of the money to gamble in Las Vegas, authorities said Wednesday.
A federal grand jury returned an eight-count indictment against Loretta Darlene Stewart-Cabrera on April 26 charging her with mail fraud, wire fraud and money laundering, U.S. Attorney McGregor W. Scott announced.
Stewart-Cabrera, 52, is a professional fiduciary who served as a trustee for a trust that owned a Sacramento property, according to a news release from the U.S. Attorney's Office for the Eastern District of California. She allegedly was having financial problems at the time. When the trust grantor died in 2012, Stewart-Cabrera carried out a scheme in which she sold the property for $300,000, gave the trust beneficiaries $30,000 and spent the rest, the news release said.
Stewart-Cabrera used some of the trust proceeds for a Las Vegas gambling trip, authorities said. She also paid family members and bought merchandise, the news release said. The trust beneficiaries were unaware of the alleged fraud.
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Federal Bureau of Investigation and Internal Revenue Service criminal investigators worked on the case, the release said.
Stewart-Cabrera faces a maximum penalty of 20 years in prison and a $250,000 fine if convicted of mail fraud and wire fraud counts, the release said. She faces a maximum penalty of 10 years in prison and a fine of $250,000 or twice the value of the property from the alleged money laundering transactions if convicted of the money laundering counts, authorities said.