Karl Hampton, a 65-year-old resident of Chattanooga, Tennessee, has been sentenced to 60 months in prison, followed by three years of supervised release, for defrauding an elderly widow with dementia of over $1.2 million. Henry C. Leventis, United States Attorney for the Middle District of Tennessee, made the announcement.
Karl Hampton and his wife Deborah were indicted in June 2021 on multiple charges, including conspiracy and money laundering. Karl Hampton faced additional charges of wire fraud. After a week-long jury trial in April 2023, he was convicted on all counts.
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Evidence presented at the trial revealed that Karl Hampton met the 86-year-old widow while working as an exterminator for a pest control company in Nashville. From January 2018 to February 2020, Hampton deceived the woman into believing he would manage her personal and financial affairs. He presented himself as her “personal representative,” “son,” or “godson,” and claimed to act on her behalf. In April 2019, he persuaded her to grant him Power of Attorney and to name him in her Revocable Living Trust and will. Subsequently, he systematically emptied her bank accounts, took out a $500,000 line of credit in her name, and incurred significant charges on her credit cards for his personal benefit.
The funds Hampton misappropriated included two investment accounts belonging to the estate of the woman’s deceased sister, which were intended to be split between the widow and another individual. Instead, Hampton redirected the money to himself.
Overall, Hampton extracted more than $1.2 million from the widow’s accounts through various means, including checks, cashier’s checks, bank transfers, cash withdrawals, and credit card use. He used the stolen funds to purchase luxury items such as a car, a luxury SUV, and a 4.3-karat diamond ring worth over $21,000. He also spent over $1,000 per day on lottery tickets.
Deborah Hampton pleaded guilty to one count of money laundering on February 13, 2023. She received a sentence of time served, three years of supervised release, and was ordered to pay $21,000 in restitution.
The Federal Bureau of Investigation’s Memphis Field Office and Nashville Resident Agency conducted the investigation. Assistant U.S. Attorney Kathryn Booth prosecuted the case.
Source: Read Original Release
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