Caribou man sentenced for income tax fraud

By Dawn Gagnon, BDN Staff
Posted Feb. 10, 2011, at 11:51 p.m.

BANGOR, Maine — A Caribou man who received his deceased mother-in-law’s benefits for years after her death was sentenced Wednesday to nearly three years in prison and fined $7,500 for income tax fraud in U.S. District Court in Bangor, U.S. Attorney Thomas E. Delahanty II announced Thursday.

In addition to the fine and 33-month prison sentence, David G. Young, 62, also was ordered to pay the maximum restitution allowed — $30,931.69 to the U.S. Office of Personnel Management and $13,308 to the Internal Revenue Service. He also was ordered to undergo three years of supervised release after his release and to pay a special assessment of $400.

Young was convicted after a federal jury trial last April in which he was found guilty of one count of conversion of government money and three counts of making false statements in connection with income tax returns, Delahanty said in a news release.

Evidence and testimony presented during the trial showed that from 1997 to 2005, Young received $138,968 in pension benefits from the U.S. Office of Personnel Management that were intended for his mother-in-law, Mary Jerram.

Jerram became a recipient of Civil Service Retirement System Benefits after the death of her husband in August 1983, seven years after he retired from the Portsmouth Naval Shipyard, according to court documents. Those benefits were deposited directly into a joint checking account that Young maintained with Jerram.

After Jerran died in February 1997, Young failed to notify the Office of Personnel Management of her death and spent all of the money that was deposited into the account. In addition, during the period Young was receiving his deceased mother-in-law’s benefits, he failed to claim the money on his income tax returns, according to Delahanty.

The investigation that led to Young’s conviction was a joint effort of the Internal Revenue Service and the Office of the Inspector General for the Office of Personnel Management, with assistance from the United States Secret Service.

http://bangordailynews.com/2011/02/10/news/bangor/caribou-man-sentenced-for-income-tax-fraud/ printed on August 1, 2014