Founder Of USA Harvest Charged In Seven Count Federal Indictment Charges Include Stealing From The Charity, Tax Fraud, And Money Laundering
– Hugh “Stan” Curtis charged with stealing $183,354 in donations
and failing to report $553,891.67 in personal income from USA Harvest
– Curtis used funds to allegedly pay for personal expenses including meals, entertainment, and travel
LOUISVILLE, Ky. – USA Harvest, Kentucky Harvest, and Blessings in a Backpack founder, Hugh “Stan” Curtis was charged in a seven-count federal indictment today, with one count mail fraud, two counts money laundering and four counts filing false income tax returns with the Internal Revenue Service, announced David J. Hale, United States Attorney for the Western District of Kentucky.
According to the indictment returned today by a federal grand jury meeting in Louisville, from September 2005 through September 2007, defendant Curtis, 63, of Louisville, Kentucky, allegedly stole approximately $183,354 in donations that he solicited on behalf of USA Harvest, a non-profit, I.R.C. 501 (c) organization. Of these stolen donations, Curtis deposited $164,620 into his personal account and personally cashed donation checks totaling $18,734 – and thereafter used the funds for his personal benefit. The $164,620 includes an August 29, 2007, donation for $20,000 from Play Like the Pros, LLC and a September 5, 2007, donation for $25,000 from Richemont North America, Inc. In addition, Curtis did not report the $183,354 as income with the Internal Revenue Service.
Further, from 2005 through 2008, it is alleged in the federal indictment, that Curtis failed to report to the Internal Revenue Service approximately $553,891.67 in personal income he received from USA Harvest. The amount includes the $183,354 in stolen donations and $370,537.67 in personal travel expenses that he charged to USA Harvest. More particularly, Curtis used approximately $370,537.67 in USA Harvest funds to pay for personal meals, personal entertainment expenses, and personal travel. In addition, Curtis fraudulently deducted approximately $353,165 in unreimbursed USA Harvest travel expenses on his 2005 through 2007 returns.
Counts four through seven of the indictment charge Curtis with filing false returns with the Internal Revenue Service. In 2005, Curtis failed to report approximately $160,549.56 in income and falsely deducted approximately $134,623 in unreimbursed travel expenses from USA Harvest on his 2005 federal income tax return filed on April 15, 2006. For the year 2006 Curtis failed to report approximately $217,085.18 income and falsely deducted approximately $130,739 in unreimbursed travel expenses from USA Harvest on his 2006 federal income tax return filed on May 9, 2007. For the year 2007 Curtis failed to report approximately $97,264.48 and falsely deducted approximately $87,803 in unreimbursed travel expenses from USA Harvest on his federal income tax return filed on April 15, 2008. For the year 2008 Curtis failed to report approximately $78,992.45 in income from USA Harvest on his 2008 federal income tax return filed on October 16, 2009. The return was filed by Curtis and signed under the penalty of perjury.
At sentencing, Curtis faces a combined maximum term of 52 years in prison, a combined maximum fine of $1,150,000, and a three-year term of supervised release.
This case is being prosecuted by Assistant United States Attorney Bryan Calhoun and was investigated by the Internal Revenue Service, Criminal Investigations Division.