March 2, 2015
By Bob Coleman
Editor, Mug Shot Monday
The owner of a high-end clothing company that outfitted Hollywood celebrities is going to jail after pleading guilty to two counts of bank and bankruptcy fraud.
Carolyn Jones obtained a $15 million asset-based line of credit from Union Bank based on three years of false tax returns and false financial statements.
Her crimes include:
Submitting audited financial statements that were prepared by a fictitious CPA firm.
2) Submitting a gross profit figure for 2007 of $44.9 million. An amount that was grossly inflated and “not even close” to actual performance.
3) Using another person’s social security number.
4) Submitting false accounts receivable agings that grossly inflated sales.
5) Committing bankruptcy fraud by failing to disclose another bank account and $185,000 she received in checks.
Carolyn will be sentenced in May and faces 35 years in jail.