OFFICE OF THE UNITED STATES ATTORNEY
NORTHERN DISTRICT OF WEST VIRGINIA
William J. Ihlenfeld, II
UNITED STATES ATTORNEY
1125 Chapline Street, Federal Building, Suite 3000 ● Wheeling, WV 26003
(304) 234-0100 ● Contact: Fawn E. Thomas, Public Affairs Specialist
May 18, 2011
FOR IMMEDIATE RELEASE
Oakland, Maryland, Resident Indicted on
Embezzlement and Tax Evasion Charges
MARTINSBURG, WEST VIRGINIA — A 49 year old Oakland, Maryland, resident was named in an Indictment returned on May 17, 2011, by a Federal Grand Jury sitting in Martinsburg, West Virginia.
United States Attorney William J. Ihlenfeld, II, announced that KENNETH HAROLD HOGAN, the owner and operator of Scrap Brothers, Inc., a business located in Paw Paw, West Virginia, was named in a four-count Indictment. Count One of the Indictment alleges that HOGAN embezzled and converted to his own use monies belonging to the United States Railroad Retirement Board from January 2004 to December 2008 by concealing his employment status in order to receive Railroad Retirement Board disability benefits in the amount of $128,961. Counts Two, Three, and Four of the Indictment allege that HOGAN attempted to evade and defeat tax owed to the United States by failing to file income tax returns for the 2006, 2007, and 2008 calendar years.
If convicted, HOGAN faces a maximum penalty of 10 years imprisonment and a fine of $250,000 on Count One of the Indictment; and a maximum penalty of five years imprisonment and a fine of $250,000 each on Counts Two, Three, and Four of the Indictment.
The case will be prosecuted by Assistant United States Attorney Erin K. Reisenweber. The case was investigated by the Internal Revenue Service-Criminal Investigation Division and the United States Railroad Retirement Board.
It should be noted that the charges contained in the Indictment are merely accusations and not evidence of guilt, and that each defendant is presumed innocent until and unless proven guilty.
Call 1-855-WVA-FEDS or Email firstname.lastname@example.org if you have information about public corruption in your community.