Former accountant pleads guilty to fraud in RBM case

A former accountant pleaded guilty last week in U.S. District Court to a federal wire fraud charge, paving the way for up to 20 years in prison.

Beginning in 2008, Jesse Shaderic Wall, 66, of Kalispell, began making material misrepresentations to RBM Lumber Company to persuade the company to invest $350,000 with him, according to a U.S. Department of Justice press release.

A RBM executive later told investigators that Wall was the company’s accountant, and that he offered to invest some of the company’s money in a way that would bring much greater returns than a bank could provide. Wall then created a Nevada corporation called Milestone Innovations Inc., and RBM’s money was invested on behalf of that entity.

But rather than investing the money for RBM, Wall used it to keep afloat his struggling business, and when RBM asked for the money back in February 2011, he was unable to pay it back. Wall had been hoping to sell his house in time to pay the company back. 

He did repay $190,000 to RBM in June 2011.

In a December 2011 interview with a Secret Service agent, Wall said he wanted to pay RBM back, but added that he “perhaps did say something misleading to them” in order to persuade them to give him the money.

The wire fraud charge stemmed from Wall writing a check to himself July 1, 2009, from a Wells Fargo Bank account in the name of Milestone Innovations for $12,500. The deposit of the check into his private account caused a wire communication in interstate commerce between Wells Fargo Bank in Montana and a federal reserve bank outside the state.

In addition to a possible maximum of 20 years in prison, Wall also faces up to 3 years of probation and a fine of up to $250,000.

According to local attorney Linda Semrow, Wall also previously settled out of court with a client of hers. She said Wall stole “a great deal of money” from the client. Wall paid back all of that money as well as attorney fees as part of the settlement.