Former Knoxville financial adviser Jacqueline Stanfill, the ex-businesswoman federal prosecutors have called an “accomplished fraudster,” was sentenced Monday to nine years in prison for ripping off almost three dozen investors for a combined $9 million.
In addition, U.S. District Judge Leon Jordan ordered her to pay back almost all of that money to her victims.
Stanfill, 58, was taken into custody immediately following Monday's federal court sentencing.
"I don't want to see another courtroom full of broken hearts," Jordan said. "We need to send a message to those contemplating defrauding others for their own greed."
The length of her sentence is exactly what prosecutors sought.
"It takes a special kind of person to look someone directly in the eyes and make misleading statements in order to get their money," said U.S. Assistant District Attorney Frank Dale. "She will continue the pattern of fraud if given the opportunity to do so."
Stanfill in January initially pleaded guilty to bilking family, friends and the elderly out of millions is in a wire fraud, mail fraud and money laundering scam that took place from 2008 through early 2015.
Prosecutors said she used the profits to help fund a lavish lifestyle.
Last months, friends, relatives and acquaintances submitted a combined 10 letters of support for the 58-year-old Stanfill. They contained anecdotal stories about her overcoming a rough childhood that later led to a life of “caring” and “generosity” but started deteriorating when the stock market crashed in 2008.
Her attorney, David Eldridge, sought no more than five years and two months in prison for her.
The government, though, argued for seven years and two months to up to nine years, which is the maximum for which she qualifies under federal sentencing guidelines.
On Monday, eight victims spoke before the court and detailed how Stanfill's crimes ruined their lives.
They talked about how her scheme broke up families, depleted retirement accounts and destroyed college trust funds.
"My sense and joy in life has been muted," said Renee Retka, a clinical psychologist who said Stanfill often called herself "Jackie Jackpot," but was actually "a sociopath."
Stanfill was married to local attorney Regina Lambert. Lambert's sister, brother-in-law and brother also read statements.
"She recklessly squandered the money on a life of excess at our expense," said Karen Franklin, who is Lambert's sister. "She stole the life savings of teachers, nurses, therapists and contractors, but her specialty was to steal the retirement from the elderly."
Karen Franklin's husband, Cary, agreed, adding that Stanfill bilked roughly $575,000 from them.
"She stole more than money," he said. "She stole security, peace of mind and dreams of the future."
Regina Lambert was never charged in the scheme, but the victims said she enjoyed the money Stanfill stole.
Joey Decuote, who initially discovered the scheme in early 2015 and met first with the FBI, said she took "my entire retirement account of over 25 years of service."
"She stole without remorse," he said.
Stanfill, before she was sentenced, addressed the judge and the small courtroom, which was filled with about 40 friends, family and victims.
"I take full responsibility of my actions," Stanfill said through sobs and tears. "I don't blame them on my childhood or drinking. I took money that belonged to my family and friends. I have no excuse for my behavior."
She turned to her spouse, Regina Lambert, and added: "People are not what they say, not what they think, not what they promise."
She then apologized to the crowd of victims.
"I know it's not enough," she said. "I know it will never be enough. I'll do everything I can do try to do something to help."
Authorities raided Stanfill's firm in January 2015. In June that year, a group of investors successfully forced her and her financial management firm into Chapter 7 bankruptcy to recover money.
Stanfill’s five-bedroom house at 7010 Stone Mill Drive in Westmoreland Heights is still on the market for almost $1.4 million.
The government hopes proceeds from its eventual sale will help her victims.
Records released in July 2015 showed that show Stanfill has assets of about $2.63 million, which includes the house, and liabilities of $1.65 million.
Liabilities include secured claims by banks totaling $1.4 million and $256,817 in unsecured claims, according to records.
Other details, according to records, include household goods and furnishings valued at $40,000; $2,000 in clothes; $7,000 in exercise equipment; $25,000 in furniture; and $10,000 in art.
Stanfill, documents show, has a 50 percent ownership in an entity identified as Madison Tucker GP. It owns two pieces of real estate in Knoxville - a commercial piece at 3523 Sutherland Ave. and a small rental home at 3520 Lyle Ave. Their value is unknown.