Elaine Martin, Conspiracy, Wire Fraud, Tax Fraud, Idaho 2013

Idaho Contractor Sentenced to 108 Months in Prison for Conspiracy, Wire Fraud, and Tax Fraud

Elaine Martin, 67, former president and majority stockholder of MarCon Inc., was sentenced to 84 months in prison followed by three years of supervised release for conspiracy, wire fraud, and mail fraud. She was also sentenced to 24 months in prison for tax fraud and obstruction of justice, with the sentences to run concurrently.

Martin was ordered to pay restitution of $98,825.20 to the Internal Revenue Service and $32,575.28 to the Idaho DBE Program. She was also ordered to pay costs of prosecution in the amount of $22,859.60.

The United States and Martin entered into an agreement stipulating that the correct forfeiture amount is $3,084,038.05. Martin paid the full amount via wire transfer to a U.S. Treasury account before sentencing.

Martin was convicted by a federal jury on September 19, 2013, of 22 criminal counts, including four counts of filing false individual and corporate tax returns, two counts of conspiracy to defraud the United States, five counts of wire fraud, five counts of mail fraud, one count of false statement, three counts of interstate transportation of property taken by fraud, one count of conspiracy to obstruct justice, and one count of obstruction of justice.

“Elaine Martin’s conviction, sentence, and forfeiture of over $3 million clearly demonstrate that fraud and misrepresentations to government programs is the wrong way to run a business,” said U.S. Attorney Wendy J. Olson. “This office, along with its law enforcement partners, is committed to rooting out greed and dishonesty in government contracting.”

Martin’s co-defendant, Darrell Swigert, 68, of Boise, a minority shareholder in MarCon, was found guilty of two counts of obstruction of justice and one count of conspiracy to obstruct justice. He is scheduled to be sentenced on March 19, 2014.

During the 26-day trial, the jury heard evidence that Martin concealed a portion of MarCon’s business income by diverting customer payments for the sales of used materials into a separate bank account. Martin did not tell MarCon’s external accountant about the bank account or the unreported sales, and in fact organized the company’s business affairs to help conceal these sales from the external accountant.

Martin paid the full amount of $3,084,038.05 in forfeiture via wire transfer to a U.S. Treasury account before sentencing.

Defendant: Elaine Martin

Criminal Charges: Conspiracy, Wire Fraud, Tax Fraud, Mail Fraud, False Statement, Interstate Transportation of Property Taken by Fraud, Conspiracy to Obstruct Justice, and Obstruction of Justice

City and State: Boise, Idaho

Sentence: 108 months in prison followed by three years of supervised release

Forfeiture Amount: $3,084,038.05

Date: Sentencing date not specified in the article, but the conviction date was September 19, 2013.

Dollar Amounts: $98,825.20 (restitution to the Internal Revenue Service), $32,575.28 (restitution to the Idaho DBE Program), $22,859.60 (costs of prosecution)

MORE FEDERAL CRIME NEWS

White Collar Crime

Victoriano Quezada Sanchez, Money Laundering, Nevada 2000

Jan 15, 2000

White Collar Crime

Raul Armando Larios, Money Laundering, Nevada 2005

Jan 15, 2005

White Collar Crime

Porfirio Sillas-Maldonado, Wire Fraud, Nevada 2005

Jan 15, 2005

White Collar Crime

Richard Narra, Money Laundering, Nevada 2008

Jan 15, 2008