Posted February 19, 2011 at midnight

http://www.knoxnews.com/news/2011/feb/19/mother-son-plead-guilty-to-embezzling-from/

GREENEVILLE - An East Tennessee mother and son pleaded guilty Friday to taking part in a scheme to embezzle more than $1.5 million from a Morristown, Tenn., church.

Barbara Whitt, 69, and Michael Whitt, 43, appeared in U.S. District Court in Greeneville and told Senior U.S. District Judge Leon Jordan that they were responsible for the three-year running theft that began in 2007.

Barbara Whitt pleaded guilty to one count of bank fraud and one count of conspiracy to commit money laundering. In a separate hearing, her son pleaded guilty to one count of conspiracy to commit bank fraud and one count of conspiracy to commit money laundering.

Assistant U.S. Attorney M. Neil Smith said the duo devised a scheme to obtain money from the First Baptist Church in Morristown from July 2007 to April of last year.

Barbara Whitt, the church's financial secretary, secured checks approved by church members made out to cash, Smith said. In secret, she added a dash and her name as the payee, then cash the checks at an area SunTrust Bank, Smith said. She appeared in court Friday beside her lawyer, Tommy Hindman.

Her son, represented by court-appointed attorney Robert Dickert, deposited money embezzled from the church into prepaid cards and took other steps to avoid currency transaction reports, court documents show.

During the three-year period, they together obtained $1,514,593 from cashing 1,600 checks, Smith said.

The plea agreement shows that their spending included Michael Whitt's purchase of an $11,000 car from a Morristown auto dealer.

Joel Young, business administrator for the church, which has a congregation of about 2,500, sat in the federal courtroom gallery as the Whitts admitted their guilt. He said afterward that the Whitts were not members of the church.

Barbara Whitt, he said, belonged to the nearby Grace Baptist Church but performed financial tasks for First Baptist Church.

When asked how the church was doing financially, he smiled, then responded, "We're blessed and continue to pray for the Whitts."

Sentencing for Michael Whitt is June 22. His mother's sentencing has not been set.

Both mother and son face anywhere from probation to hefty prison time for their crimes.

The maximum penalty for conspiracy to commit money laundering is 20 years in prison and a $500,000 fine. Both bank fraud and conspiracy to commit bank fraud carry a maximum 30-year penalty and a fine of up to $1 million.

In addition, the court has the option of ordering both defendants to pay restitution to the church.