June 22, 2018
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Ex-Chelsea selectwoman to be sentenced Friday on extortion, fraud charges

By Judy Harrison, BDN Staff

BANGOR, Maine — A former Chelsea selectwoman is to be sentenced Friday afternoon in U.S. District Court on charges of extortion and tax and worker’s compensation fraud.

Carole Swan, 56, of Chelsea faces up to 20 years in federal prison on the extortion convictions. She also faces up to three years in prison on the tax fraud charges and up to five years for workers’ compensation fraud.

Under the federal sentencing guidelines her recommended sentence is between 6½ and 8 years, more than twice that of her husband’s sentence of 33 months, according to court documents.

Swan was found guilty last year by two different juries in separate trials on the extortion and fraud charges. One jury found her guilty in July on five counts of tax fraud from 2006 to 2010 and two counts of lying in 2008 and 2010 about her income and work history to receive workers’ compensation benefits.

The same jury found Swan not guilty on two of four counts of workers’ compensation fraud and not guilty of the illegal use of federal funds used to pay for a culvert with money from the Federal Emergency Management Agency.

In September, a second jury found Swan guilty of three counts of extortion in connection with the kickbacks she demanded from Frank Monroe, a Whitefield contractor who plowed and sanded the town’s roads. Swan maintained that she was conducting a sting operation and planned to take the $10,000 in cash she allegedly had received from Monroe to prosecutors.

Both juries rejected Carole Swan’s contention that she was justified in breaking the law due to alleged abuse at the hands of her husband, Marshall Swan. She attended her husband’s sentencing earlier this month and hugged him before he was handcuffed and removed from the courtroom by U.S. marshals.

Carole Swan’s attorney, Leonard Sharon of Auburn, in his sentencing memorandum urged U.S. District Judge John Woodcock to impose a sentence under the guideline range but did not suggest a specific sentence. The defense attorney also has asked that his client serve any prison time in a federal prison camp in Danbury, Connecticut, or Alderson, West Virginia.

Assistant U.S. Attorney Donald Clark, who prosecuted the Swans, recommended they each received stiff sentences at the top of their guideline ranges.

Marshall Swan, 57, of Chelsea was found guilty by a jury in October on five counts of tax fraud for knowingly underreporting the income from his construction business, Marshall Swan Construction, to the IRS between 2006 and 2010.

He was sentenced June 2 and ordered to begin serving his sentence immediately. As of Friday, he had not yet been transferred from Maine to a federal prison, according to the U.S. Bureau of Prisons Inmate locator website.

Woodcock also sentenced Marshall Swan to a year of supervised release and ordered him to pay a $40,000 fine. Just prior to sentencing, he paid the $145,000 owed in back taxes.

Watch bangordailynews.com for updates.


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