PORTLAND, Ore. – A Seattle man was sentenced to 46 months in federal prison for his role in a fraud scheme involving a former Oregon Department of Energy Employee. Martin J. Shain, 61, was also ordered to pay more than $520,000 in restitution.
Shain was found guilty of engaging in a corrupt scheme to profit off the sale of government tax credits. He and Joseph Colello, a former Oregon Department of Energy Employee, maintained a secret business relationship whereby the two would personally profit from the sale and purchase of Oregon BETCs.
Colello would give Shain the names of BETC sellers and interested buyers, and then contact the sellers and buyers to negotiate credit transfers. Shain would create a company in the name of his relative to receive commission payments from the sellers of the tax credits, and Colello would receive a portion of this fee as a kickback.
Between 2012 and 2015, Shain deposited over $1.3 million in income from the commissions charged to sellers of BETC credits. He would transfer a portion of these funds into a personal account from which he would purchase and issue biweekly cashier’s checks payable to Colello or Colello’s girlfriend.
Colello pleaded guilty to conspiracy to engage in monetary transactions in property derived from specific unlawful activity, conspiracy to defraud the United States, and filing a false income tax return. He was sentenced to 60 months in prison and ordered to pay more than $81,000 in restitution.
Shain previously pleaded guilty to conspiracy to defraud the U.S. and tax evasion. He will self-surrender to the U.S. Marshals on October 25, 2018.
“At the expense of taxpayers, small businesses, and the State of Oregon, Martin Shain and Joseph Colello orchestrated a corrupt scheme to profit off the sale of government tax credits,” said Billy J. Williams, U.S. Attorney for the District of Oregon.
The case was investigated by IRS Criminal Investigation and the FBI, and prosecuted by Claire M. Fay and Scott E. Bradford, Assistant U.S. Attorneys for the District of Oregon.
Key Facts
- State: Oregon
- Category: Public Corruption|White Collar Crime
- Source: DOJ Press Release â†â€â€
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