Vanguard Employee’s Sentence for $2 Million Fraud Scheme Tossed

An employee of The Vanguard Group, who pleaded guilty to conspiracy to commit mail fraud, money laundering, and tax evasion, will get his sentence recalculated thanks to a Thursday opinion by the U.S. Court of Appeals for the Third Circuit.

The district court misapplied the abuse of position enhancement to Scott Capps and needs to clarify if the gross receipts adjustment is actually applicable to his sentence, the court said in an opinion by Judge Kent A. Jordan.

Capps fraudulently caused funds from dormant Vanguard accounts to be mailed to his co-conspirators, one of whom then wrote checks conveying $584,950 ...