U.S. Department of Justice Alice H. Martin United States Attorney Northern District of Alabama

FOR IMMEDIATE RELEASE
AUGUST 30, 2004
www.usdoj.gov/usao/aln <http://www.usdoj.gov>

ATHENS CPA PLEADS GUILTY TO MAIL FRAUD, MONEY LAUNDERING, AND TAX EVASION

BIRMINGHAM, AL - United States Attorney Alice H. Martin of the Northern District of Alabama, Carmen S. Adams, Special Agent in Charge, Federal Bureau of Investigation, and James D. Vickery, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announce that DONNA MADISON BRUCE pled guilty today to charges of mail fraud, money laundering, and tax evasion.

According to U.S. Attorney Alice H. Martin, the Information filed in this case charges BRUCE, 43, of Athens, Alabama, a self-employed certified public accountant, who operated under the business name of “Donna Madison Bruce, CPA”, with one count of mail fraud, one count of money laundering, and one count of tax evasion. JCG Management, the victim, hired BRUCE to provide payroll and tax accounting services. In providing services to JCG, BRUCE had the authority to sign checks and pay bills related to the business.

Beginning in July 1998, and continuing through July 2002, BRUCE would deposit JCG’s money into her personal and business accounts without JCG’s permission. BRUCE also paid other personal and business debts with JCG funds without the knowledge and consent of JCG Management. According to the plea agreement, BRUCE used the United States mail to deliver payments to her home equity line of credit at AmSouth Bank. On May 12, 2002, BRUCE purchased a house for $78,116.22, using deposits from JCG to her business checking, personal checking, payments on her home equity line, and transfers from her home equity line to her personal checking account.

The information in which BRUCE pled guilty also alleges that during the course of BRUCE’s employment as accountant for JCG Management, BRUCE filed false and fraudulent tax returns with the Internal Revenue Service and failed to pay the proper income tax on her earnings.

The maximum sentence for mail fraud is twenty years in prison. Money laundering carries a maximum sentence of ten years and tax evasion five years. All counts except for the tax evasion counts carry a fine of up to $250,000. The fine for tax evasion is up to $100,000. The victim, JCG Management, has already obtained a civil judgment in the amount of $850,000. Sentencing will be set at a later date before United States District Judge R. David Proctor in Birmingham.

As part of the plea agreement, BRUCE has agreed to return property purchased with JCG funds. BRUCE further agreed to forfeit and transfer title in the following property: a 2000 Chevrolet Suburban, a 2001 Chevrolet C1500 pickup truck, and the $78,000 residence.

"When JCG Management placed its trust in the hands of Ms. Bruce, there was an expectation of professionalism, not theft. Ms. Bruce instead broke that trust and used her position to steal from this local business," said U.S. Attorney Alice H. Martin. “Offenders should note that in all cases, including white collar crimes, not only will this office vigorously prosecute, but we will also, whenever possible, seek forfeiture counts and force them to give up any property or proceeds which result from their crimes.”

Special Agents of the Federal Bureau of Investigation along with Special Agents of the Internal Revenue Service-Criminal Investigations Division investigated the case and Assistant United States Attorney Angela Redmond Debro is prosecuting this case.

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