Hazelwood Woman Pleads Guilty in Bank Fraud Scheme

A Hazelwood woman today pleaded guilty in federal court to charges stemming from a scheme to defraud the defunct Dwelling House Savings & Loan of more than $1.1 million.

Jammie E. Harris, also known as Jammie E. Williams, 46, pleaded guilty to bank fraud and money laundering before Senior U.S. District Judge Alan Bloch. In January, a federal grand jury also indicted Elexa Manos-Benton, 42, of Coraopolis, in connection with the scheme that ultimately led to the demise of once-venerable Dwelling House.

Prosecutors said Harris took part in a plan to defraud Dwelling House by opening a PayPal account, then using that account to withdraw far more money than she had in another account at Dwelling House. Investigators said she took advantage of flaws in Dwelling House's internal operations that should have but did not catch and reject those transactions.

Judge Bloch is scheduled to sentence Harris at 12:30 p.m. on Aug. 11. Her sentence could include up to 40 years in prison, fines of up to $1.25 million or both.

Manos-Benton also is charged with using a PayPal account in a similar fashion to defraud Dwelling House of more than $900,000. She is awaiting trial on charges of bank fraud, money laundering and monetary transaction in criminally derived property.

If convicted, she faces a maximum of 500 years in prison, a fine of more than $14 million, or both.

 In 2009, the U.S. Office of Thrift Supervision closed Dwelling House after determining that the 119-year-old institution could not recoup substantial capital loses, according to the Pittsburgh Post-Gazette. Until then, the Hill District institution had earned a reputation for serving low-income and minority clients in the Pittsburgh region.

Following its closure, the bank's assets were acquired by PNC Financial Services Group, according to the Post-Gazette.

The Federal Bureau of Investigation, Internal Revenue Service and Pittsburgh Police conducted the investigation.