2 Accused of Cheating Blind Vendors in D.C.

A Bowie mother and daughter who managed a D.C. government program aimed at employing blind vendors were indicted yesterday on charges of embezzling $281,000, much of which was supposed to be paid to the vendors, who were working at snack bars, cafeterias and gift shops in federal buildings.

In a 13-page indictment from the U.S. attorney's office, Barbara A. Stevenson-Jones, 70, and Pamela A. Stevenson, 51, were charged with four counts of theft and carrying stolen goods across state lines.

From November 2003 to July 2004, their management company was being paid by the city to operate the District's Randolph-Sheppard Vending Facilities Program.

Under the scheme alleged by prosecutors, the pair was supposed to collect vending revenue and distribute the money to the 46 vendors and each of their retirement accounts. Instead, they did not pay the vendors the full amount they were due and wrote checks to their personal bank accounts and their company, Wellness and Management, prosecutors said.

"This situation created a significant hardship on the blind vendors who depended on these monies for their support . . . [and] prevented some of the blind vendors from retiring when they planned to do so," the indictment said. Furthermore, the company's failure to properly handle the money put the program at risk of federal decertification.

Without knowing about the alleged embezzlement, D.C. government officials terminated the city's contract with the management company in July 2004, citing nonperformance related to the company's failure on accounting and tax duties. City officials then tried to recover funds that had been paid to the company to manage the program, winning a judgment in a civil lawsuit, said Channing Phillips, spokesman for the U.S. attorney's office.

However, the District was unable to recoup the money and turned the case over to federal authorities in 2007. The subsequent investigation led to the indictment. The defendants face up to 10 years in jail and $250,000 in fines.