A federal appeals court has upheld the 25-year prison term imposed on Woody Hayes, the man who conned an order of Catholic sisters and an aging World War II veteran out of more than $4 million.U.S. District Judge Maurice Hicks, in imposing the maximum allowable sentence last year, called Hayes a "financial vampire" who preyed upon the vulnerable and returned again and again to his victims, who trusted him and wanted to help him.
Hayes, 54, appealed his sentence on the grounds the judge went beyond the sentencing guidelines in imposing punishment. The 5th U.S. Circuit Court of Appeals in New Orleans ruled Hicks had sufficient reasons to do so.
Hayes admitted defrauding the Daughters of the Cross of $3.5 million and Shreveporter Charles Lunan of $867,000 with a series of convincing sob stories that he was about to lose his home and was besieged by a lawsuit against him.
Prosecutors said he spent the money on gambling, customized pickups with ostrich- and alligator-skin interiors, homes for himself and his son, and household furnishings. The victims have gotten a fraction of their money back. Some of the things Hayes bought were seized by the government, auctioned off and the proceeds given to the victims. That money to the sisters totaled just over $300,000.
The sisters filed suit against the bank that held their account, saying it did not do enough to protect them. The suit said their account was set up to require two signatures before funds could be withdrawn, but 140 cash withdrawals -- many in the tens of thousands of dollars -- were made by a single sister over nine months. That suit has been settled for an undisclosed amount.
Federal prosecutors said they believe others were involved with Hayes but they have been unable to prove it and Hayes did not provide any information.
Lunan was a pilot during World War II. Prosecutors said Lunan, then in his mid-80s, nearly liquidated his life's savings to help Hayes because Lunan believed his home had been destroyed by fire and a thief had taken his checkbook and written a bunch of bad checks."I wish I could say I forgive you," the son of a Presbyterian minister told Hayes during the sentencing hearing. "I can't get that far. I'm trying to forget you."
The Daughters of the Cross have been in Shreveport for more than 100 years. They were noted for their missions, charitable works and educational efforts. They operated the all-girls St. Vincent Academy until it closed in 1988.
Prosecutors said the money Hayes got from the order was provided by a trusting, naive member. They do not believe she was involved in the con.
The sisters accumulated millions of dollars over the years and had plans for a legacy after their few remaining members had died.
Hayes will have to serve about 85 percent of his sentence before he is eligible for probation.
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