Collaborators sentenced in Camden fake will case

Four defendants -- three co-conspirators and one perpetrator --  involved in a years-long fake will case in Camden were sentenced this week in U.S. Federal District court in El Dorado.
Four defendants -- three co-conspirators and one perpetrator -- involved in a years-long fake will case in Camden were sentenced this week in U.S. Federal District court in El Dorado.

The final two defendants in a years-long federal case dealing with the creation and execution of a false will for an over $1 million estate were sentenced Wednesday, bringing the case one step closer to its conclusion.

Marion Diane Kinley, known as Diane Kinley, pleaded guilty to conspiracy to commit wire fraud last April and was sentenced to 18 months in the federal Bureau of Prisons yesterday. She faced up to 20 years in prison and a $250,000 fine.

Jordan Alexandra Peterson, known as Alex Peterson, was sentenced to three years probation for lying to an agent of the Federal Bureau of Investigation, which she pleaded guilty to last January.

Donna Herring, who actually created the false will, was sentenced Tuesday to 41 months (three years and five months) in the federal BOP. Herring pleaded guilty to one count of wire fraud last January.

John Wayne Kinley, the fourth co-defendant, was sentenced to 12 months plus one day in the federal BOP Tuesday. The additional day makes him eligible for ‘good conduct time,’ meaning he could ultimately serve less than his 12 month sentence. He pleaded guilty to wire fraud last January.

CASE DETAILS

Matthew Seth Jacobs, a survivor of the Deepwater Horizon oil rig explosion in the Gulf of Mexico in 2010, began receiving payments from a multi-million settlement he received as a result of the injuries he sustained in the explosion in April 2012.

He met Herring the following month and her family quickly became embedded in his life — he bought real estate through agent Herring; he worked with Herring’s husband’s business, Meek’s Pest Control; and he eventually began dating Herring’s then-high school aged daughter, Alex Peterson, at Herring’s urging.

On Jan. 19, 2015, Matthew Jacobs was killed in an automobile accident, leaving his then-minor son, Jordan Jacobs, as his only descendant and the sole heir-at-law to his estate. No will was able to be located in a thorough search of Matthew Jacobs’ home.

On Jan. 24, Herring searched the Internet for information related to Arkansas probate law, ultimately creating a fake will that was signed the following morning by John and Diane Kinley. The Kinley’s debit card was used to pay for a subscription to formswift.com, the legal document-preparing site the fake will was created through.

Herring claimed to have found a sealed envelope containing a copy of Matthew Jacobs’ will at her office, Century 21 Campbell & Company in Camden. The “original” was located in the gun safe, which was previously searched by Lance Reed and Jordan Jacobs, in Matthew Jacobs’ home at a later date.

The false will named Jordan Jacobs and Alex Peterson as beneficiaries, with Jordan Jacobs being willed $50,000 to go towards college or trade school, with any monies remaining after the completion of school to be paid out to him upon his graduation; and the remainder of the estate going to Alex Peterson. The estate has been valued at between $1.3 million and $1.7 million.

In November 2016, Herring was indicted by a grand jury on counts of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. Subsequent superseding indictments named the other defendants, all of whom eventually pleaded guilty to crimes in exchange for having other charges against them dismissed.

There was extensive discussion yesterday on whether Diane Kinley was a minor or more substantial participant in the crimes. After several witness testimonies and arguments from the prosecution and defense, U.S. District Judge Susan O. Hickey eventually determined that Diane Kinley’s participation in the crime was minor, resulting in less criminal exposure for the defendant.

Before sentencing, Diane Kinley’s defense attorney Bruce Eddy requested a downward departure from Hickey’s sentencing guidelines of 21 to 28 months in prison, as well as for his client to be sentenced to probation.

“She has been bullied her entire life … and Donna Herring coming over and telling Ms. Kinley and John Kinley that these things needed to be signed … John Kinley tells us that Ms. Kinley knows what happens when you tell Donna no,” Eddy said, referenced John Kinley’s earlier testimony that he and his wife had a difficult time telling Donna Herring no because of Diane Kinley’s previous experiences with her.

“Bullying is a true thing,” Eddy went on. “It’s now being recognized for the danger and problems it causes, much like the #MeToo movement. … It might seem hard to think when you first think about it, but bullying can cause you to commit a criminal offense.”

Diane Kinley then addressed the court; she was barely audible through an outburst of tears. In her statement, she apologized to Jordan Jacobs and her family members and asked the judge for lenience.

The prosecuting attorney, Assistant U.S. Attorney Ben Wulf disagreed with Eddy’s assessment, asking Judge Hickey not to grant a downward departure from her sentencing guidelines or probation, noting that Diane Kinley never told the truth about having knowingly signed a fake will until after she’d been caught and charged.

“The lies remained even through the FBI investigation,” Wulf said. “They maintained their silence, all to the detriment of Mr. Jacobs; all to the detriment of the estate; all to the detriment of the court system.”

“The idea that a probationary sentence promotes respect for the law is wrong,” Wulf continued. “There are people across the street in Union County that are going down for B&Es (breaking or entering charges), for drug possession. … This is a $1 million theft. This is very serious activity.”

Judge Hickey did grant Diane Kinley a downward variance, decreasing her guidelines to between 18-24 months in prison. She sentenced Diane Kinley to 18 months in the federal BOP, saying she would recommend the defendant be housed at the Federal Medical Center BOP in Fort Worth, Texas.

Diane Kinley is also subject to three years of supervised release upon the completion of her prison term. She is scheduled to report to her assigned institution on Jan. 22, 2020.

“I received a lot of letters of support for you from people in Camden … but I’m cognizant of the damage this scheme did to others in the community,” Judge Hickey said. “It just seems to me that you must be punished. … I hope that you can put this episode behind you when you return to Camden and your immediate family. I hope you live a long and productive life.”

Alex Peterson’s sentencing hearing was considerably shorter than Diane Kinley’s. Peterson pleaded guilty last January to lying to the FBI after falsely saying she did not know the location of Matthew Jacobs’ cell phone. She was discovered to have retrieved the cell phone later.

Peterson’s attorney, Allen Roberts, urged Judge Hickey to sentence her to probation. She faced up to five years in prison, and the sentencing guidelines called for zero to six months of incarceration.

Peterson did not speak on her own behalf, and the prosecution did not offer any final comments about her case. She was sentenced to three years probation, with the first six months to be served in home detention with electronic monitoring.

“I don’t take your conduct lightly,” Judge Hickey said.

The case will close out tomorrow after a restitution hearing is held with Herring and the Kinley’s. Peterson’s charge does not call for restitution per the U.S. statute. The restitution hearing is scheduled to start at 9:30 a.m. in the federal building in El Dorado.

Caitlan Butler can be reached at 870-862-6611 or [email protected].

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