PANAMA CITY, FL — Patrick Shawn Kelley, 54, of Panama City Beach, has pleaded guilty to two counts of tax evasion after siphoning more than $1.1 million in income from a U.S.-backed construction firm operating in Afghanistan. The construction company partner failed to file tax returns for 2009, 2010, and 2011, deliberately hiding wages, diverted company funds, and offshore cash transfers from the IRS.
Kelley was a partner in American Construction Logistics and Services (ACLS), a firm that secured lucrative contracts to support U.S. Government operations in Afghanistan. Instead of paying his dues, Kelley funneled $1,167,025.32 in untaxed income through personal channels, including $320,550 used to buy a home in Panama City Beach, $156,000 for a stake in a motorcycle shop, and $44,000 for a boat. He also purchased a Jeep Wrangler for $10,393 and loaned $9,500 to a friend — all with company money.
Even as his business partners remained in the dark, Kelley orchestrated a web of financial deception. He diverted $353,520.37 from ACLS corporate accounts into his personal bank accounts and directed employees in Afghanistan to wire cash directly to his wife. None of these transactions were reported to the IRS, allowing him to dodge $210,397 in federal taxes owed.
The guilty plea, entered on October 14, exposes a brazen betrayal of both his partners and federal tax law. Kelley admitted to concealing income across three years, using government-funded projects as a personal piggy bank while operating under the radar of accountability. The case shines a light on the vulnerabilities in overseas contracting and the lengths some will go to avoid tax obligations.
Each count of tax evasion carries a maximum penalty of five years in prison, a $250,000 fine, and full restitution. Sentencing is scheduled for January 13, 2017, at 2:00 p.m. at the United States Courthouse in Panama City. If the court imposes the maximum, Kelley could face up to a decade behind bars.
The investigation was led by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction. Assistant United States Attorney Stephen M. Kunz is prosecuting the case. For public records, visit the U.S. District Court for the Northern District of Florida website. Additional information is available through Amy Alexander, Public Information Officer, at (850) 216-3854 or amy.alexander@usdoj.gov.
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Key Facts
- State: Florida
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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