Man Indicted on Fraud Faces New Allegations

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A man federally indicted for fraud last July was in court Friday facing new allegations. Phillip Colley was arrested for theft by deception and for violating his pre-trial release. A federal hearing was held in Lincoln to see whether the 48 year-old should remain in custody.

Last summer he was indicted for overcharging clients at some assisted living centers. Colley and the owner of Serenity Place, Vernon Strauch were indicted on social security and health care fraud.

Friday, Investigators from the Lincoln Police Department testified in federal court. After his July indictment they say he continued to commit fraudulent crimes. Investigators say among his victims, a former co-worker and two residents at an assisted living center. They testified he was able to steal $22,000 from former co-worker Vernon Strauch by falsifying government documents.

A government worker also testified Colley allegedly embezzled money from an inheritance. A postal inspector testified he committed mail fraud. Because of these investigations, Colley was detained by a Federal Judge.