Panama City Man Indicted on 24 Counts of Wire Fraud

A federal grand jury has returned an indictment charging 48 year old Danny L. Hubbard of Panama City with 24 counts of wire fraud.

Counts one through 24 of the indictment allege that between November 2006 and May 2008, Hubbard fraudulently obtained money from the American Federation of Government Employees, Local 1380, a labor union that represents federal employees who work at the Naval Support Activity in Panama City, Florida.

On November 9, 2006, Hubbard was appointed the acting president of AFGE Local 1380 and continued in that capacity until May of 2008.

According to the indictment, once he became president of AFGE Local 1380, Hubbard utilized the union’s funds for his personal benefit by writing checks to himself, to cash, to the TNC Quick Stop convenience store, Sam’s Club, AT&T, and Boomtown Casino.

The funds disbursed as a result of these transactions were not used for AFGE Local 1380’s official business or for the union. Hubbard did not obtain approval from AFGE Local 1380’s executive board or membership before disbursing the funds to himself, cash, or other third party entities.

The indictment alleges that Hubbard fraudulently obtained approximately $91,504.08 from AFGE Local 1380 as a result of the scheme to defraud.

If convicted, Hubbard faces a maximum possible sentence on each count of 20 years in prison, a fine of up to $250,000, up to three years of supervised release, criminal forfeiture, and a $100 special monetary assessment.

The indictment results from an investigation by agents of the U.S. Department of Labor and is being prosecuted by Assistant United States Attorney Kathryn Risinger.

An indictment is merely a formal charge by a grand jury that a defendant has committed a violation of federal criminal law. All defendants are presumed innocent unless and until the government proves their guilt beyond a reasonable doubt to the satisfaction of a jury at trial.

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