Four persons, including a former teller at the Perpetual Federal Savings and Loan Association, pleaded guilty yesterday to participation in a computer fraud scheme in which about $18,000 was illegally withdrawn from other persons' savings accounts at the financial institution.
Assistants U.S. Attorney Raymond Banoun of the fraud division said in court documents that the investigation is countinuing.
"The evidence would additonally show that this scheme by at least one other person at the association and possibly another teller." Banoun said in outlining the case in court files.
The teller who pleaded guilty yesterday was Leon navora Raye, 26, of 319 Kennedy St. NW, who worked at the 11th and E Street office.
According to the charges against him, Raye used his computer ternimal at the association to locate savings account of legitimate customers that had been inactive for a long period.
Through continued use of the computer, he then transferred the money to fictitious accounts he had set up in other names, the charges said.
He and three friends then used the money to help cover debts at a social club they operated called "Life, Ltd," as well as paying their own private bills, according to the charges.
Raye pleaded guilty to a charge of embezzlement, which carries a possible maximum prison term of five years.
Also pleaded guilty were his three friends, who admitted to "false pretense" charges that carry a maximum prison term of three years.
Entering those pleas were Carl leon Madison, 30, of 6424 5th St. NW herbert Tyrone Simmons, 27, of 3307 Chauncey Pl., Mount Rainier, and Adell Dawson, 29 of 3650 Minnesota Ave. SE.