Saturday, October 26, 2013

Stephanie Pater Charged with Defrauding, Sentenced Two Years

Stephanie Pater, 39, was sentenced to two years in prison on Tuesday, September 24.  Pater admitted to stealing $264,000 from a prior employer and current business partner, Tribune Co., owner of the Chicago Tribune.

Stephanie Pater had over a two-decade career in commercial real estate.  Pater began her career in the industry as an intern during her senior year of college at Emory University in Atlanta, Georgia.  Following graduation, she worked at Trammell Crow Company, Kaplan Inc. and then she moved to Kirkland & Ellis as the Director of Real Estate.  She stayed there for about one year and then moved to Tribune Co. in January of 2008, as the Director of Real Estate.  Pater left Tribune Co. in 2010 to form Catalyst Group, LLC, a provider of real estate consulting for various corporate clients, including Tribune Co.  During the bad times of the economy, Catalyst Group closed and Pater was contacted by American Express.


Stephanie Pater created fraudulent contracts between Tribune Co. and Catalyst Group, LLC which sent commissions from a real estate brokerage company to Catalyst.  This act took place over a six month period.  Pater was asked for a copy of the contract between Tribune Co. and Catalyst Group and she gave them the actual contract to try to cover up that there was any fraud going on. 


The type of fraud that Stephanie Pater delved in was mail fraud.  According to the Cornell University Law School’s Legal Information Institute, mail fraud is having devised or intending to devise a scheme to defraud or obtain money by fraudulent pretenses by means of false representations and having that fraudulent document delivered by mail or other carrier to the appropriate recipient. 


Pater was charged with defrauding Tribune Co. in December 2012.  In addition to horrible, fraudulent acts committed by Stephanie, she missed her arraignment three different times which only angered the judge even more!  Pater’s first arraignment was scheduled for January 3, 2013 and she was a “no-show.” At Pater’s second arraignment, scheduled January 10, she again did not show and the judge, U.S. District Judge Samuel Der-Yeghiayan, issued an arrest warrant.  On January 15, Der-Yeghiayan withdrew the previous arrest warrant after hearing from Pater that she would be in court for her next scheduled arraignment.  Just 30 minutes before the start of Pater’s prosecution, she sent out an email to several people claiming she would be late due to the late arrival of her flight but that she would come straight to the courtroom.  The judge, infuriated, issued a second arrest warrant for Pater.  It was later uncovered that Pater chose not to fly out the night prior in order to make her scheduled time. 


Finally, Pater surrendered and was held in custody, though only for six days.  On September 24, 2013, Stephanie was sentenced two years in prison for her fraudulent activity.  Assistant U.S. Attorney, Rick Young, had asked for a 3½ year sentence because her scheme took place over many months.  Young said, “The lack of any apparent reason leads to one conclusion—greed.  To have a lifestyle she couldn’t have.” 


Pater’s father described her as “fully committed to her work in commercial real estate.”  She said that the charges against her do not seem fit for her character; she is the divorced mother of a teenager. 


I believe that Pater deserved the sentence that she got and possibly even more.  Mail fraud allows for imprisonment for not more than 20 years and a fine.  Pater should have to pay back everything that she stole.  The cause for this fraud was most likely greed.  Stephanie had her own company and she had multiple clients that are large corporate companies, in particular Tribune Co.  She may have been doing this just because she could without getting caught.  Another reason Pater may have done this is to continue to live the lifestyle she lived prior to her husband leaving her.  I do not know where he worked or what type of work he was into but she may have had to downgrade her housing and put a decline on the spending that she may have been used to previously.  Pater was very wrong in doing this to a company, especially a company that was filing for Chapter 11 bankruptcy, which she managed the consolidation for.  

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