Kasey Nicholson on Monday was sentenced to 30 months in prison for her involvement in the “Cream Scheme” that defrauded insurors of millions of dollars. Federal Judge Sandy Mattice handed down her sentence in the Federal Courthouse in Winchester.
Defense attorney Brian O'Shaughnessy argued his client, an aesthetician, was not a leader in the scheme. He claimed her biggest client, Matthew Perkins, “was acting on his own accord.”
“Ms.
Nicholson could not initiate any kind of contact while Perkins was aboard the George H.W. Bush,” said attorney O’Shaughnessy, who also emphasized the lack of information pertaining to Ms. Nicholson that came out during the case.
Prosecutor Perry Piper disagreed with this characterization of the defendant, saying she “recruited him, directed him, and told him to sell the creams. She also emailed him directly, or sent him the items.” Prosecutor Piper also spoke about how, because of her recruitment of Perkins, 30 other people were caught up in the multi-level marketing scheme.
However, Judge Mattice did not see enough proof to enhance Ms. Nicholson’s sentence on the grounds that she had a “leadership role.”
“There’s not enough evidence to ascribe an adjustment, and I find the government has not carried the burden of proof,” said Judge Mattice. “It seems Ms. Nicholson did what Wilkerson told her to do.”
Wayne Wilkerson, her fiancé and the fifth and final co-defendant in the Cream Scheme case, was sitting next to her and attorney O’Shaughnessy. Her attorney then asked for a downward variance, citing the same argument Michael Chatfield’s attorney had used a few days prior.
“You can’t ignore the cultural factor of someone who has never been exposed to the court system,” said the attorney, who claimed that short prison sentences can act as deterrents for those who have committed white collar crimes and are not repeat offenders.
“It is critically important Americans know all their citizens stand equal before the law,” said Judge Mattice. “This is a serious offense and we have to promote respect for the law.”
“I think probably at first, she didn’t see anything wrong, but over time she had to have seen what was going on,” the judge said, who said a strong sentence would deter others who are tempted to exploit loopholes in the system.
Attorney O’Shaughnessy spoke about how Ms. Nicholson’s family, professional, and social life has been negatively affected by the case. He spoke about how she has lost one of her closest friends, and that one of her siblings has not spoken to her since the trial.
Prosecutor Piper called Ms. Nicholson’s dilemma the “essence of the trial,” saying each defendant made the mistake of not only committing a crime, but also of using people they were close to “as an instrument of fraud.”
Judge Mattice characterized Ms. Nicholson as a “tagalong for Mr. Wilkerson,” and the prosecution said they viewed her as an “extension” of the man who is viewed as the leader of the scheme. When Ms. Nicholson got a chance to speak, she mentioned Wilkerson several times during her allocution.
“My relationship with my family has suffered immensely,” said Ms. Nicholson. “To the court, Wayne Wilkerson is the lead defendant. But to me, he was my number one supporter, my future husband, and eventual father to my children.
“I apologize from the bottom of my heart to everyone negatively affected by this process.”
After this, Judge Mattice pronounced the sentence along with a forfeiture of $135,000. Ms. Nicholson will self-report to prison on Oct. 28.
Nicholson faces sentencing on Tuesday. A co-defendant, Michael Chatfield, earlier got 108 months, and Nicholson has a much longer guideline sentencing range.