Panama City Contractor Kelley Gets 15 Months for Tax Dodge

PANAMA CITY, FLORIDA – Patrick Shawn Kelley, 55, of Panama City Beach, is trading sunshine for stripes after being sentenced to 15 months in federal prison for dodging over $210,000 in taxes. The sentence, handed down yesterday, closes a case stretching back to Kelley’s work with a construction company operating in a war zone.

Kelley, a partner in American Construction Logistics and Services (ACLS) between 2009 and 2011, admitted to deliberately failing to file tax returns for three years – 2009, 2010, and 2011. The total unreported income clocked in at a hefty $1,167,025.32, stemming from wages, ACLS funds used for personal perks, and even cold, hard cash wired to his wife by ACLS employees stationed in Afghanistan. The bottom line: Kelley stiffed the IRS for $210,397.

This wasn’t a simple oversight. While ACLS was building something in Afghanistan, Kelley was busy building a lavish lifestyle on the company dime, all without informing his partners or the taxman. Between 2010 and 2011, Kelley funneled significant sums directly from the ACLS bank account into his own pockets, covering expenses like a $320,550 beachfront house in Panama City Beach. He didn’t stop there.

The spending spree continued with a $156,000 investment in a motorcycle shop, a $44,000 boat, a $10,393 Jeep Wrangler, and even a $9,500 loan to a friend. Kelley also siphoned off $353,520.37 into his personal accounts and directed Afghan employees to wire cash directly to his wife – a clear attempt to hide the money trail. The feds didn’t miss it.

The investigation, a joint effort by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction, peeled back the layers of Kelley’s scheme. Assistant United States Attorney Stephen M. Kunz secured the conviction and ultimately, the 15-month sentence, along with a hefty $210,397 in restitution owed to the IRS.

This case underscores the U.S. Attorney’s Office for the Northern District of Florida’s commitment to prosecuting financial crimes, no matter where the money originates. The office, one of 94 nationwide, serves as the principal litigator under the direction of the Attorney General. Public court documents are available on the U.S. District Court for the Northern District of Florida website. For further information, contact Amy Alexander, Public Information Officer, at amy.alexander@usdoj.gov.