TN man gets 5-year sentence for defrauding elderly widow of $1.2 million

NASHVILLE, Tenn. (WKRN) — A Chattanooga man will be spending the next five years in prison for his role in a scheme to defraud an elderly widow who had dementia.

On Tuesday, Sept. 10, the United States Attorney’s Office announced that 65-year-old Karl Hampton was sentenced to five years in prison, followed by three years of supervised release, and ordered to pay over $1.2 million in restitution.

Karl Hampton and his wife, Deborah Hampton, both formerly of Franklin, were indicted in June 2021 on multiple counts of conspiracy and money laundering. Karl was also charged with eight counts of wire fraud. Officials said he was found guilty on all counts following a week-long jury trial in April 2023.

At the trial, evidence revealed that Karl had met the victim, an 86-year-old widow, while he was working as an exterminator for a pest control company based in Nashville. He spent the next two years between January 2018 and February 2020 befriending the woman and tricking her into believing that he would care for her personally and financially.

According to the U.S. Attorney’s Office, Karl would refer to himself as her “son” or “godson,” and in April 2019, he convinced her to sign over her Power of Attorney and to name him in her Revocable Living Trust and in her will.

Karl then drained the widow’s bank accounts, took out a $500,000 line of credit in her name, and amassed huge charges on her credit cards. Officials said some of the funds he stole came from two investment accounts that belonged to the estate of the woman’s deceased sister.

In total, Karl stole more than $1.2 million from the woman in the form of checks, cashier’s checks, bank transfers, cash withdrawals, and by using her credit card. Evidence showed he used that money to buy luxury items including a car, an SUV, and a 4.3-karat diamond ring that cost more than $21,000. He also frequently spent over $1,000 per day in cash buying lottery tickets.

Deborah pleaded guilty to one count of money laundering on February 13, 2023, for her role in the scheme. She was sentenced to time served, three years of supervised release, and ordered to pay restitution in the amount of $21,000.

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