CORPORATE
OFFICER PLEADS GUILTY TO SCHEME TO FRAUDULENTLY
OBTAIN UNEMPLOYMENT BENEFITS FOR EMPLOYEES
OBTAIN UNEMPLOYMENT BENEFITS FOR EMPLOYEES
February 22, 2005
U.
S. Attorney's Office
Northern District of Georgia
75 Spring Street, S.W. - Suite 600
Atlanta, Georgia 30303
Tel: 404.581.6000
Fax: 404.581.6181
Northern District of Georgia
75 Spring Street, S.W. - Suite 600
Atlanta, Georgia 30303
Tel: 404.581.6000
Fax: 404.581.6181
FOR
IMMEDIATE RELEASE
David E. Nahmias, United States Attorney for the Northern District of Georgia; Douglas J. Colon, Special Agent in Charge, Office of the Inspector General, United States Department of Labor; and James D. Vickery, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced that MARSHALL GILLEY, 55, of Lanett, Alabama, and G. E. ROBINSON TRUCKING COMPANY, INC., of LaGrange, Georgia, pleaded guilty today before United States District Judge Jack T. Camp on charges of mail fraud and filing a false tax return with the Internal Revenue Service. According to Nahmias:
GILLEY pleaded guilty to submitting on behalf of G. E. ROBINSON TRUCKING COMPANY fraudulent claims to the Georgia Department of Labor for partial unemployment benefits payable to truck drivers of G. E. ROBINSON TRUCKING COMPANY. The claims falsely understated the actual hours worked and income received by the truck drivers. Between January 1998 and December 2001, based upon the false reports, the Georgia Department of Labor paid unemployment benefits totaling $67,323.16 to G. E. ROBINSON TRUCKING COMPANY employees to which they were not entitled.
During the relevant time frame, GILLEY ran the day to day operations of G. E. ROBINSON TRUCKING COMPANY. GILLEY caused the actual hours worked by the employees to be concealed on the company's books and records by paying the drivers in cash for some or all of the work they performed during certain weeks. GILLEY generated the cash to pay the truck drivers by causing company checks to be issued to himself and other company officers. The checks were disguised on the company's books as reimbursements for parts purchases.
G. E. ROBINSON TRUCKING COMPANY pleaded guilty to filing a false employment tax return with the Internal Revenue Service for the second quarter of 1999, which understated the wages paid to employees during that quarter.
As part of GILLEY's guilty plea, GILLEY has agreed to pay restitution to the Georgia Department of Labor in the amount of $67,323.16. According to information presented in open court, a check in that amount has already been presented to the Georgia Department of Labor. As part of the guilty plea of G. E. ROBINSON TRUCKING COMPANY, the company has agreed to pay $37,042.98 in back taxes to the Internal Revenue Service.
Sentencing is set for May 4, 2005, at 2 p.m. before Judge Camp.
United States Attorney David Nahmias said of the case, "This fraudulent scheme was designed to allow a company to pay its employees through unemployment compensation benefits rather than company revenues. Companies and their officers that seek to defraud government benefits programs for corporate gain face federal prosecution, felony convictions, restitution and prison time."
This case was investigated by agents of the United States Department of Labor, Office of the Inspector General, Southeast Region, and the Internal Revenue Service, Criminal Investigation Division.
This case is being prosecuted by Assistant United States Attorney William McKinnon.
For further information please contact David E. Nahmias, United States Attorney or F. Gentry Shelnutt, Chief, Criminal Division, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.