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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Kentucky

FOR IMMEDIATE RELEASE
Wednesday, January 16, 2013

Restitution Payment Obtained From Sale Of Former Home Of Defendant Paul Barth

– Proceeds from sale of house will go toward restitution for the Crusade for Children

LOUISVILLE, Ky. – The United States District Court Clerk located in Louisville, Kentucky will receive payment this week from the sale of the former home of former McMahan Fire Chief, Paul Charles Barth, in the amount of $130,410.56, to be applied toward the restitution owed the WHAS Crusade for Children and the McMahon Fire Protection District, announced David J. Hale, United States Attorney for the Western District of Kentucky. In addition, another $66,198.01 from the sale will be deposited in the Court Clerk’s registry account and may also be available for restitution.

“This is a significant first step toward making the Crusade for Children whole again,” stated U.S. Attorney Hale. “We will pursue further measures to collect additional funds from Barth for restitution beyond today’s payment until every dollar has been restored to the charity. In fact, we will request that the Court apply the $66,198.01 toward restitution, which will leave very little restitution outstanding.”

Barth, the former McMahan Fire Department Chief, began serving a 41 months sentence in federal prison followed by three years of supervised release on December 20, 2013. He was sentenced on November 19, 2012 in federal court by U.S. District Judge John G. Heyburn, II. On June 21, 2012, Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering. He was ordered to pay restitution to his victims, the WHAS Crusade for Children and the McMahon Fire Protection District (MFPD). The restitution order in favor of the Crusade was $190,000, and the order in favor of MFPD was $8,277, for a total of $198,277.

According to the United States Attorney’s Office, the private sale and transfer of Barth’s real estate property located in Jeffersontown, Kentucky was completed yesterday. The United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, have released liens and claims to the real estate. In addition to the $130,410.56 to be paid directly for restitution, an additional $66,198.01 from the proceeds from the sale of the property will be paid into a registry account held by the United States District Court Clerk’s Office in Louisville, Kentucky. The United States Attorney’s Office will move the Court to apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation may also assert an interest in the additional proceeds. However, if the United States’ motion is successful, a total of $196,608.57 will have been applied toward the outstanding $198,277 restitution obligation, excluding interest.

This case was prosecuted by Assistant United States Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts were led by Assistant United States Attorney Joe Ansari. The case was investigated by the United States Secret Service - Kentucky Electronic Crimes Task Force, which includes the University of Louisville Police Department, the United States Postal Inspection Service, and the Criminal Investigation Division of the Internal Revenue Service.