Minnesota Woman Sent to Prison For Role in $1.8 Million Fraud

Get our free mobile app

St. Paul, MN (KROC-AM News) - A Minnesota woman has been sentenced to federal prison for a conviction connected to multiple schemes to defraud people throughout the nation.

The US Attorney for Minnesota says 70-year-old Gale Joyce Ferngren of Rush City has been ordered to spend 21 months behind bars followed by two years on supervised release. She is also being required to pay $1.7 million in restitution.

According to court documents, Ferngren and others were involved "in a scheme to launder proceeds that were fraudulently obtained from victims throughout the United States, including the proceeds of romance fraud schemes and schemes to defraud Federal Pandemic Assistance Programs. Federal prosecutors say she laundered at least $1.8 million in fraud that proceeds from 2017 through April of last year.

Under the terms of the plea agreement that had her admit to one count of mail fraud, Ferngren acknowledged receiving nearly 70 debit cards containing "approximately $1.3 million in fraudulent unemployment benefits from California and Nevada to which she was not entitled." The charges against her alleged that she kept a portion of the money for herself and transmitted most of the funds to the other participants in the fraud schemes, including some located overseas.

Ferngren also admitted to receiving money fraudulently obtained from victims of romance scams. Prosecutors say the scheme had other participants coercing the victims into sending money to the Minnesota woman after cultivating online romantic relationships with them.

The investigation that led to the charges against Ferngren was conducted by the FBI, the US Postal Inspection Service, and the US Department of Labor-Office of Inspector General.