Former professional trustee of Sacramento-based trust sentenced to 30 months in prison for fraud and money laundering

 

Date: September 29, 2020

Contact: newsroom@ci.irs.gov

Sacramento, Calif. — Loretta Darlene Stewart-Cabrera, also known as Loretta Dexter, of Sacramento, was sentenced today by U.S. District Judge Kimberly J. Mueller to 30 months in prison for wire fraud and money laundering.

According to court documents, Stewart-Cabrera was a professional fiduciary who served as the trustee of a trust that owned a Sacramento property. After the trust grantor died in December 2012, Stewart-Cabrera executed a scheme to obtain and spend the trust assets. Stewart-Cabrera did this by selling the trust's property, only distributing to the trust beneficiaries approximately $30,000 of the more than $300,000 she received from the sale of the property, and spending the remaining money without the permission or knowledge of the trust beneficiaries. She used a portion of the trust funds to gamble and dine in Las Vegas casinos, pay family members, and purchase merchandise.

This case was the product of an investigation by the IRS Criminal Investigation and Federal Bureau of Investigation. Assistant U.S. Attorney Brian A. Fogerty prosecuted the case.