Contact: David B. Joyce
Assistant U.S. Attorney
(207) 780-3257

Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Thomas
Nelson, formerly the Chief Executive Officer of York County Community Action Corporation
(“YCCAC”), pled guilty today in United States District Court before United States District Judge
Nancy Torresen to conspiracy, embezzlement from a federally funded program, tax evasion and
signing false tax return charges.

YCCAC provides social service, health, and educational programs to York County
individuals and families living in poverty. From 2006 to 2010, YCCAC received in excess of
$30,000,000 in federal funds to be used for those purposes. Court records reveal that from 2005 to
2010, Nelson diverted $413,000 in YCCAC funds to a consulting company that had only submitted
one invoice for $8,700. In exchange for the fraudulent payments, the consulting company paid more
than $20,000 of Nelson’s personal expenses, including his home mortgage and also kicked cash back
to Nelson. From 2004 to 2009, Nelson also diverted more than $400,000 in YCCAC funds to a
defunct non-profit entity, New England Community Action Agency (“NECAA”) and recorded those
payments as donations or consulting expenses. When NECAA was operating, Nelson was its
treasurer. After transferring these funds to NECAA, Nelson used more than $300,000 of them to pay
personal credit card and home mortgage bills and to gamble. In all, Nelson admitted embezzling
approximately $900,000 from YCCAC between 2004 and 2010.

From 2005 to 2010, Nelson also failed to report to the Internal Revenue Service (“IRS”) over
$400,000 in embezzled income. Finally, in 2006 and 2007, Nelson prepared and signed NECAA tax
returns which suggested the agency had revenue and assets, when, in fact, it did not.

Nelson faces imprisonment of up to five years and a fine of up to $250,000 on the conspiracy
count; up to ten years and a fine of up to $250,000 on the embezzlement count; up to five years and a
fine of up to $100,000 on each of the tax evasion counts; and up to three years and a fine of up to
$100,000 on the false tax return counts. As part of his plea agreement, Nelson agreed to pay
restitution of about $1.2 million to YCCAC and about $150,000 to the IRS. He will be sentenced
after completion of a pre-sentence report by the United States Probation Office.

This case was investigated by IRS - Criminal Investigation and the Offices of Inspector
General for the Departments of Transportation, Health and Human Services, Housing and Urban
Development, and Agriculture.

 

 

 

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