John McKay, United States Attorney for the
Western District of Washington, announced
today that ALLEN C. MARTIN, age 62, formerly
of Bremerton and Port Orchard, Washington,
was sentenced by United States District Judge
Jack E. Tanner in Tacoma to 14 months in prison
for conspiring to defraud the Internal Revenue
Service in the late-1980s and early-1990s.
Judge Tanner imposed a sentence at the high
end of the sentencing range due to MARTIN'S
fugitive status during the last nine years,
his use of an alias while he was on the run,
and the flagrancy of his fraudulent behavior
during the commission of the crime. Once MARTIN
is release from his prison, MARTIN will serve
a three-year term of supervised release, during
which time he will be required to cooperate
with the IRS by filing past due tax returns
and paying past due taxes.
Court records show that:
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. MARTIN was the part-owner and president
of ALLEN MARTIN CHEVROLET--AMC, INC. in Bremerton,
Washington. Randall was the general sales
manager for the business.
c. During this period, MARTIN and Randall
diverted 356 checks, totaling approximately
$178,000, from the dealership. These checks
represented payments from customers for business-related
goods and services. MARTIN and Randall deposited
these 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. MARTIN and Randall also diverted approximately
$21,000 in cash receipts paid by customers
for business-related goods and services at
the auto dealership. They deposited the cash
for their personal use and benefit and did
not report these funds on their personal income
tax returns.
e. In 1988, MARTIN and Randall diverted a
diamond ring, valued at $2,000, given by a
customer of the dealership as a down-payment
toward the purchase of an automobile. They
used the diamond for their personal use and
did not report the value of the ring on their
personal tax returns.
f. Furthermore, the conspirators created
false internal sales records to reflect sales
prices for automobiles that differed from
the actual negotiated prices, and they sometimes
forged the signatures of purchasers on Vehicle
Buyer Order forms.
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.
h. The total amount of taxes evaded by them
for 1987, 1988, and 1989, was $59,146 (not
including penalties and interest).
In 1994, a federal grand jury returned an
Indictment against MARTIN and Randall, charging
them with 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 persistent efforts, Deputy United States
Marshals finally were able to locate MARTIN
in 2003. Earlier this spring, U.S. 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.
MARTIN entered a guilty plea in this case
on August 26, 2003.
The case was investigated by the Tacoma resident
office of the IRS, Criminal Investigation
Division. The case was prosecuted by Assistant
United States Attorney Janet Freeman.
For further information, please contact,
Assistant United States Attorney Janet Freeman
at (206) 553-7729, or Lawrence Lincoln, Press
Spokesperson for the United States Attorney's
Office at (206) 553-7970.
