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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Adoption fraud nets 2-year term

A woman who fraudulently received more than $44,000 from eager parents-to-be will spend two years in federal prison for using the Internet in an infant adoption and surrogacy scheme called “Dream Makers.”

Joella Kern posted pictures of babies on her Internet site, which claimed its purpose was “bringing families together.”

She offered to locate babies for adoption or provide surrogate mother services to Internet customers who were required to make down payments. Kern sent pictures and descriptions of babies she said were available for adoption.

But the only deliveries were made to her bank account, authorities said.

It is believed to be the first Internet adoption-fraud case of its kind in the United States, said Tom Rice, the senior criminal prosecutor in the U.S. Attorney’s Office.

“A child is the most precious gift any human could ever give or receive,” Kern’s Web site told prospective customers.

“The Internet continues to provide new and novel avenues to perpetuate fraud schemes,” said U.S. Attorney Jim McDevitt.

“But federal criminal laws, including wire fraud statutes, are there on the books so we can continue to go after just these kinds of schemes,” McDevitt said.

The 37-year-old woman swindled seven prospective parents out of $44,390 before U.S. Secret Service agents arrested her in June 2003, said Assistant U.S. Attorney Stephanie Lister, who prosecuted the case.

Kern plugged in her computer and operated the scheme unnoticed while living in a small house in Prosser, Wash., before moving to Umatilla, Ore., Lister said.

At least three prospective couples, including one from Louisiana, traveled to Prosser, near Yakima, to pick up babies – only to be told the birth mother had died or backed out of adoption plans.

Kern pleaded guilty last November to one count of wire fraud as part of a plea agreement that dismissed other counts, Lister said.

Nielsen ordered Kern to spend 24 months in prison, followed by three years of supervised release. She also was ordered to pay a $100 special assessment and make $44,390 in restitution payments.

The remaining counts were dismissed by the judge.