John McKay, United States Attorney for the
Western District of Washington, announced
today that ALLEN C. MARTIN, 62, formerly of
Bremerton and Port Orchard, Washington, pleaded
guilty today before Tacoma United States District
Judge Jack E. Tanner to Conspiracy to Defraud
the Internal Revenue Service, in violation
of Title 18, United States Code, Section 371.
MARTIN is scheduled to be sentenced on November
20, 2003, at 10:30 a.m. MARTIN faces a sentence
of up to five years imprisonment, a fine of
up to $250,000, and at least three (3) years
of supervised release after release from prison.
Court records show that:
In 1994, a federal grand jury returned an
Indictment against MARTIN. The Indictment
charged MARTIN and Gerald Clyde Randall with
the crimes of Conspiracy to Defraud the Internal
Revenue Service and Tax Evasion for the years
1987, 1988, and 1989.
MARTIN knew about the indictment, yet failed
to appear for his arraignment in federal court.
In 1994, he became a fugitive and remained
in hiding for nine years. Due to the persistent
efforts of the Tacoma office of the United
States Marshals Service, deputy United States
marshals were able to locate MARTIN. Earlier
this spring, deputy marshals tracked MARTIN
to a rural area outside of Portland, Oregon,
where he was residing under the assumed identity
of a deceased man. Deputy Marshals arrested
MARTIN on JULY 17, 2003.
Today, MARTIN pleaded guilty to the crime
of Conspiracy to Defraud the IRS and he admitted
the following conduct:
a. From January 8, 1987, through April 15,
1990, ALLEN C. MARTIN and Gerald C. Randall,
his co-conspirator, agreed to defraud the
Internal Revenue Service in the proper assessment
and collection of tax revenue.
b. During this period, MARTIN was the part-owner
and president of ALLEN MARTIN CHEVROLET--AMC,
INC. in Bremerton, Washington. Gerald C.
Randall was the general sales manager for
the business.
c. During this period, the conspirators diverted
356 checks, totaling approximately $178,000,
from the dealership. These checks represented
payments from customers for business-related
goods and services. The conspirators deposited
the business-related checks into MARTIN'S
personal bank account and used the funds
for their personal use and benefit. They
did not report the receipt of these funds
on their personal income tax returns.
d. During this period, MARTIN and his co-conspirator
also diverted approximately $21,000 in business
receipts, paid by customers to the dealership
for business-related goods and services.
The conspirators deposited the cash for
their personal use and benefit. They did
not report the receipt of these funds on
their personal income tax returns.
e. In 1988, the conspirators also diverted
a diamond ring, valued at $2,000, from a
customer of the dealership as a down-payment
toward the purchase of an automobile. The
conspirators used the ring for their personal
use and benefit, and did not report the
value of the ring on their personal income
tax returns.
f. Furthermore, the conspirators created
false internal sales records to reflect
sales prices for automobiles that differed
from the actual negotiated sales prices,
and they sometimes forged the signatures
of purchasers on Vehicle Buyer Order forms
which had been retained at the dealership.
g. In 1987, the conspirators filed false
income tax returns with the IRS. In 1988
and 1989, MARTIN did not file any income
tax returns with the IRS.
h. The total amount of taxes evaded by
the conspirators for the calendar years
1987, 1988, and 1989, was $59,146 (not including
penalties and interest).
In 1994, Gerald C. Randall entered a guilty
plea to the same charge and he was sentenced
by United States District Judge Jack E. Tanner.
The case was investigated by the Tacoma resident
office of the IRS, Criminal Investigation
Division.
For further information, please contact Janet
Freeman, Assistant United States Attorney,
at (206) 553-7729, or Executive Assistant
United States Attorney John Hartingh at (206)
553-4110.
