Alabama Man Sentenced in Money Laundering Scheme

A Pelham, Ala., man has been sentenced to 37 months in prison in a money laundering scheme that involved his daughter as a co-conspirator.

Authorities say 69-year-old Paul Lane Jr. and his 28-year-old daughter, Katherine, concocted a story about her being assaulted at work and needing money for a personal injury lawsuit. Officials say the two collected more than $400,000 and told victims they’d be repaid from the suit’s settlement.

The Lanes were indicted for wire fraud, mail fraud and money laundering. U.S. Attorney’s officials say Paul Lane Jr. – who pleaded guilty in August – was ordered to pay $343,900 in restitution to 20 victims and pay $10,500 to the government as proceeds of illegal activity.

Katherine Lane pleaded guilty in 2010 and was sentenced to 87 months in prison.