Former Upper Cumberland Development District (UCDD), Executive Director Wendy Askins, 55, was sentenced Friday to 18 months in prison by U.S. District Judge Aleta A. Trauger, followed by two years of supervised release. Askins must also pay $233,000 in restitution.
Askins pled guilty to theft of Federal program funds in late August, after being charged in a 12-count indictment on charges of conspiracy, bank fraud, embezzlement, and making false statements.
Askins was accused of using money from the UCDD and related agencies to purchase property outside Cookeville, which called Living the Dream. Askins used funds from the UCDD, the Cumberland Regional Development Corporation (CRDC) and the Cumberland Area Investment Corporation (CAIC), to renovate the home, intended as an assisted living facility for senior citizens.
Askins and her daughter then apparently moved into the home and spent thousands of dollars in taxpayer money to create a luxurious living space for themselves. A company called L.A. Management was created to operate the senior living facility.
Askins was also accused of asking employees to falsify UCDD board meeting minutes to hide her illegal activity, then lying about the incident. Court documents show that co-defendant Larry Webb, Askins carried out the scheme with co-defendant Larry Webb, who plead guilty in August 2015, and reportedly agreed to testify against Askins as part of a plea deal.
The case was investigated by the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigation Division; the U.S. Department of Commerce, Office of Inspector General; the U.S. Health and Human Services, Office of Inspector General; and the U.S. Housing and Urban Development, Office of Inspector General. The United States was represented by Assistant U.S. Attorneys Stephanie N. Toussaint and William F. Abely.