FOR IMMEDIATE RELEASE|
FRIDAY, AUGUST 12, 2005
TDD (202) 514-1888
FORMER COLUMBUS, OHIO BAR OWNER CHARGED
WITH TAX AND MAIL FRAUD, CONSPIRACY, AND MONEY LAUNDERING
WASHINGTON, D.C. - A federal grand jury returned a 10-count indictment today charging Martin J. McNamee with conspiracy, money laundering, tax fraud, and mail fraud relating to his participation in a long-term cash-skimming scheme and a false insurance claim, the Justice Department announced today.
The indictment charges that Martin J. McNamee-the former owner of Columbus, OH area bars known as Pockets, Shooters, and the Out-R-Inn-conspired with others at his businesses to defraud the United States by regularly skimming cash from two of those bars. This skimming impaired and impeded the United States from determining the true income tax liabilities of McNamee, two of his corporations, and other individuals. The conspiracy began in 1994 and continued into 2000.
According to the indictment, McNamee and others regularly skimmed cash proceeds from the Out-R-Inn and Shooters bars. They allegedly created and maintained false corporate records which under-reported the gross receipts, and also destroyed cash register receipts that disclosed the true cash sales. Additionally, as part of the conspiracy to impede and impair the Internal Revenue Service from ascertaining and computing the corporations’ income tax liabilities, the indictment charges that McNamee filed false corporate income tax returns and failed to file some corporate income tax returns for his bars.
For the years 1995 through 2000, McNamee also filed individual income tax returns, some which were amended. On those returns, McNamee ultimately reported a combined 6-year taxable income totaling $73,623. He failed to report income earned during those six years from his alleged skimming of large amounts of cash from his corporations. The indictment also charges McNamee with five counts of filing false income tax returns from 1996 through 2000.
McNamee is also charged with engaging in a mail fraud scheme to defraud his insurance company and others. According to the indictment, McNamee intentionally flooded his own home at 415 Fox Run, in Powell, Ohio, and in 2001 filed an insurance claim for damages resulting from that flood. The indictment also charges McNamee with three separate money laundering offenses that are related to his disposition of some of the checks paid to him by his insurance company as a result of his insurance claim.
If convicted, McNamee faces potential sentences of five years in prison and a $250,000 fine on the conspiracy charge; three years in prison and a $250,000 fine on each of the false income tax return charges; twenty years in prison and a $250,000 fine on the mail fraud charge; and ten years in prison and a $250,000 fine on each of the money laundering charges.
An indictment is only a charge and is not evidence of guilt. The defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.