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Justice News

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

FOR IMMEDIATE RELEASE
Friday, April 12, 2013

U.S. Attorney Announces Additional $63,437 Restitution For Crusade For Children

– U.S. District Court Judge Orders Held Payment Released From Sale Of Defendant Paul Barth’s Former Home

LOUISVILLE, Ky. – The United States District Court Clerk in Louisville, Kentucky will forward an additional restitution payment, in the amount of $63,437, to the WHAS Crusade for Children, announced United States Attorney David J. Hale. The funds are proceeds from the sale of the former home of convicted former McMahon Fire Protection District Chief Paul Barth. The funds are being released at the request of the United States, pursuant to a Court Order entered today by U.S. District Judge John G. Heyburn II.

“This is another significant step in the effort to recover the funds stolen by Paul Barth from the Crusade for Children. This money can now go where it was intended: to help the many children and their families in our community who rely on the important services provided by the Crusade’s charitable donations. A total of $196,608.57 has now been applied toward the $198,277 restitution obligations, and we expect the remaining amount to be paid in full,” stated U.S. Attorney Hale.

Barth pleaded guilty to one count of mail fraud, two counts of wire fraud, and 12 counts of money laundering, on June 21, 2012. He was sentenced on November 19, 2012 in federal court by U.S. District Judge Heyburn to a sentence of 41 months imprisonment, which Barth began serving on December 20, 2012. At sentencing, the Court also ordered Barth to make 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.

The private sale of Barth’s real estate in Jeffersontown, Kentucky was completed on January 15, 2013. At that time, the United States and American Alternative Insurance Corporation, insurer of McMahon Fire District, each maintained liens on the real estate. In addition to the initial $130,410.56 recovered from the sale of the real estate – which was returned as restitution to the Crusade and the McMahan Fire Department – an additional $66,198.01 from the proceeds of the sale was paid into a registry account held by the U. S. District Court Clerk’s Office in Louisville, Kentucky. The U. S. Attorney’s Office asked the Court to also apply these additional funds to the restitution owed by Barth. American Alternative Insurance Corporation asserted an interest in the proceeds. Today’s Court Order resolved the dispute in favor of the United States’ position.

This case was prosecuted by Assistant U. S. Attorneys David Weiser and Bryan Calhoun. The restitution collection efforts are led by Assistant U. S. 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.