Caribou man guilty of income tax fraud

By Judy Harrison, BDN Staff
Posted April 15, 2010, at 10:37 p.m.

BANGOR, Maine — A federal jury on Thursday found a Caribou man guilty of continuing to receive his mother-in-law’s government survivor benefits for years after her death and of income tax fraud.

David Young, 61, faces up to 10 years in prison and a fine of up to $250,000, according to a press release issued by the U.S. Attorney’s Office. He also could be ordered to pay restitution.

A sentencing date has not been set.

Young remains free on personal recognizance bail.

The jury deliberated for about 90 minutes before finding Young guilty of one count of conversion of government money and three counts of income tax fraud. The trial began Monday before U.S. District Judge John Woodcock.

Evidence and testimony presented during the trial showed that Young’s mother-in-law, Mary Jerram, was a recipient of Civil Service Retirement System Benefits, according to U.S. Attorney Paul Silsby. Mary Jerram received survivor benefits after her husband, Percy William Jerram Jr., died in August 1983, seven years after he retired from the Portsmouth Naval Shipyard, according to court documents.

Mary Jerram received survivor benefits from her husband’s pension until her death in February 1997, according to the trial brief filed by Assistant U.S. Attorney Nancy Torresen, who prosecuted the case. Young did not notify the retirement system of his mother-in-law’s death and her monthly benefit of more than $1,400 was deposited into the joint account she had with her daughter and son-in-law.

Young also did not declare the income he had fraudulently received on his federal income tax returns for 2003, 2004 and 2005, Silsby said in the press release.

Defense attorney Bruce Mallonee of Bangor told the jury in his opening statement Monday that his client made a lot of mistakes but never intended to break the law.

“We’re disappointed in the verdict,” he said Thursday. “Mr. Young is a good man who got caught in a bad situation.”

http://bangordailynews.com/2010/04/15/news/bangor/caribou-man-guilty-of-income-tax-fraud/ printed on September 22, 2014