PORTLAND, Maine — Thomas Nelson of Alfred, former chief executive officer of York County Community Action Corp., pleaded guilty Tuesday in U.S. District Court to conspiracy, embezzlement from a federally funded program, tax evasion and signing false tax return charges, U.S. Attorney Thomas E. Delahanty II announced.
York County Community Action Corp. provides social service, health and educational programs to York County individuals and families living in poverty, the U.S. attorney’s office said in a press release.
From 2006 to 2010, the corporation received in excess of $30 million in federal funds to be used for those purposes.
Court records reveal that from 2005 to 2010, Nelson diverted $413,000 in corporation funds to a consulting company that had submitted only one invoice for $8,700, the press release said. In exchange for the fraudulent payments, the consulting company paid more than $20,000 of Nelson’s personal expenses, including his home mortgage and also kicked cash back to him.
From 2004 to 2009, Nelson also diverted more than $400,000 in corporation funds to a defunct nonprofit entity, New England Community Action Agency, of which he was treasurer, and recorded those payments as donations or consulting expenses, the press release said. After transferring the funds, he used more than $300,000 of them to pay personal credit card and home mortgage bills and to gamble.
In all, Nelson admitted embezzling approximately $900,000 from York County Community Action Corp. between 2004 and 2010, according to the U.S. attorney’s office.
From 2005 to 2010, Nelson also failed to report to the Internal Revenue Service more than $400,000 in embezzled income, the press release said.
Finally, in 2006 and 2007, he prepared and signed New England Community Action Agency tax returns that suggested the agency had revenue and assets when in fact it did not.
Nelson faces imprisonment of up to five years and a fine of up to $250,000 on the conspiracy count; up to 10 years and a fine of up to $250,000 on the embezzlement count; up to five years and a fine of up to $100,000 on each of the tax evasion counts; and up to three years and a fine of up to $100,000 on the false tax return counts, the U.S. attorney’s office said.
As part of his plea agreement, Nelson agreed to pay restitution of about $1.2 million to York County Community Action Corp. and about $150,000 to the IRS.
He will be sentenced after completion of a presentence report by the United States Probation Office.
Nelson entered his guilty pleas before U.S. District Judge Nancy Torresen.
The case was investigated by the criminal investigation office of the IRS and the Offices of Inspector General for the Departments of Transportation, Health and Human Services, Housing and Urban Development, and Agriculture.
Community Action Programs, where political insiders get employed as pay back for faithful party work to receive nice salaries, spend taxpayer money and other things as shown in this article.
and what do you think the chances are of him paying back the 1.2 mil? “0%”
Slim and none.
$1.2M should ring a bell to Robert Nutting.Oh wait.
“From 2005 to 2010, Nelson also failed to report to the Internal Revenue
Service more than $400,000 in embezzled income, the press release said.”
As if they expected him to. Thatd be like saying “Yep, I stole this.” Is that the tax evasion part of his charges? If so, are you kidding me? What absurd law making was involved in that? They can charge you for stealing money and then also charge you for not telling them you stole it?
Well, if you do not steal, why worry about it.
Brilliant. Absolutely brilliant. Its the complacent attitude you display that enables a nation of once free people to become slaves to their all powerful government. Thanks…. Why worry about it… I dunno, why worry about the camera’s on a street corners, or the RFID tags soon to be in everything, or the fingerprint/x-ray scanners or anything else shoved down our throats under the guise of security and safety and freedom when in reality its not about that at all. Why worry about the laws, so long as you follow them, thats your logic… Dont do anything wrong and you have nothing to worry about… Sad, really…. I dont live in the rain forest an Im not the one cutting down trees, nor am I the one drilling for oil and dying when it spills into the ocean, but, I have to say, I am pretty worried about both those things. Im pretty sure that if they cut the last tree down I might have a bit harder of a time breathing, just like you might have a bit harder of a time living happily when they tighten the nose you’ve let them slip over you head… And trust me, they will tighten it.
One has already given up their freedom when they decide to steal.
That was rather brilliant too. That you so much for both of your intelligent remarks… Where do you people come from? Single sentence land? Do they not teach you how to construct well thought out arguments to defend your position? You have never stolen anything in your life? Ever? Not even a quarter? Never had siblings and stole their toys for a bit? Never stole that cookie out of the jar when you shouldnt have? I bet you did. You shouldn’t have any freedom. At all. You are a dirty nasty thief. (No, Im not really being serious or insulting you, just illustrating my point in a less dull manor.) I find it really hard to believe that its possible for a human to exist in the world most you dream of. Its called the “American Dream” because you have to be asleep to believe it, to quote a rather brilliant man. Perhaps its time some more of us start waking up, before we cant.
Nice comment. Short and to the point.
Thank you, kind sir, for enabling the kind of mediocrity and shallowness which perpetually stagnates the air of intelligence some people try to breath.
I wasn’t speaking to you, oh verbose and defensive one, but thank you wholeheartedly for your endorsement! :)
You werent? Oh. My mistake. I guess I didnt notice it said ” eyevabigun 8 hours ago in reply to BillyFiske” right next to it. I suppose I also didnt realize I was being defensive. In fact, I think I was being rather offensive. I am bringing the fight and the hostility, not reacting to it.
My, my. You have reached the pinnacle of obnoxiousness and over worded rants. Congratulations! :)
Now go away . My ‘likes’ count just reached 666.
That’s a good little boy…..
If only your brain was as big as your gun, I might take you seriously. Hows that for over wording?
Gun? You don’t even get the purposely misspelled (so it wouldn’t be blocked) Benny Hill reference, do you. So much for gray matter, Troll. :)
Assuming someone should understand some obscure reference you have made and then condemning them for what you perceive as their lack of intelligence for not understanding said obscure reference, hardly is an argument as to how I personally lack “gray matter”. I could make references you wouldn’t get all day long. Proves nothing at all. Ill happily continue to “troll” you all day, provided you continue to feed me the ammunition to do so. Perhaps you should consider that before posting another nugget of ignorance.
Then I hope you have contacted DC about the CISPA vote
Absolutely they expected him to report the income. He could have reported the income on the face of the 1040 as “other income” with no need to reveal the source. FYI, even if he did disclose the source of the money by filing it on another tax form such as a schedule C, the form for a self employed business and identfying his occupation as thief, the IRS is not allowed to disclose his tax return information with law enforcement. Now that is absurd. As long as he did not take any expenses incurred in the illegal activity and paid his correct tax, he would not have been charged with tax evasion. So…. you can grow weed, sell it, claim the income, take no expenses for growing, harvesting and distributing, pay the tax on the income and the IRS has no problem with the accuracy of your return.
So honestly earned income is taxed but ill-gotten gains are tax free?
I suppose I assumed that it was a rather redundant point, charging him for not reporting stealing the money. I suppose when you steal something, it generally is free as I assume that is that nature of theft, to obtain goods without having to pay for them. But, I guess taxes are different, some how. I guess I didn’t realize that people who commit illegal acts in order to make money were expected to pay taxes on that money. In fact, I thought the whole reason most people do illegal things to make money was to avoid taxes and working for it. Boy, did I have it all wrong.
That’s how Al Capone was finally prosecuted. Here’s an idea…don’t steal.
That seemed to work out well for Rick Scott and Bob Nutting.Both belong in jail.
Along with Dale McCormick.
Heres some information: I dont steal.
Yet the ex-turnpike director was never charged with tax evasion. I guess he declared as income everything that he stole. I’m sure being a prominent ex-Dem legislator had nothing to do with it.
I hope they dig deeper and find out exactly how this could happen. Sounds like a cover-up!
This needs to be severly punished. White collar theft is alwayss given a much more lenient sentence and /or penalty then otehr types of theft. This is a non-profit, stealing, whic is worse. They should also reclassify the entire operation from the time it was created as a “for profit”, as clearly it was. Then hit him up for those back taxes. Jail time, come on!
At least he owned up and didn’t blame it on poor families or his “Addiction to Greed”.
Perhaps a system of checks and balances would have been appropriate in this agency. Duh.