United States Attorney Richard B. Roper
Northern District of Texas

LOCAL BUSINESSMAN SENTENCED TO THREE YEARS IN FEDERALPRISON,
WITHOUT PAROLE, FOR FILING A FRAUDULENT TAX RETURN

Defendant Admitted Embezzling Approximately $728,000

DALLAS — John Mabry, a former managing partner of a meeting planning and coordination service, was sentenced yesterday by U.S. District Judge Ed Kinkeade to three years in prison, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Mabry pled guilty in December to one count of filing a fraudulent tax return.

According to documents filed with the Court, John Mabry was the managing partner of MTZ Meetings L.L.C. (MTZ), a limited liability company specializing in full service meeting planning and coordinating, holding a 40% interest in the company. Two other partners, Tracie Terrill and Jane Belli, held 40% and 20% interests respectively. Mabry handled the financial aspects of MTZ and acted as the head accountant. He was also designated as the tax matters partner and was the main contact with the partnership’s Certified Public Accountant and attorney. Mabry had custody of the MTZ checkbook, made entries into the MTZ books and records, and reconciled the MTZ bank account statements.

Beginning in 1999 and continuing through 2003, according to the factual stipulations in the case, Mabry used his position at MTZ to embezzle money from the partnership by diverting funds from the MTZ operating accounts by way of checks and transfers to him and others for personal expenses. To avoid detection, Mabry created false entries in the company books and records to make the embezzled checks and wires appear like legitimate business transactions. In 2002, Mabry embezzled $728,345.16 from the company.

According to the factual resume filed in the case, Mabry used the embezzled funds for his personal benefit. The following are some of the dispositions of funds Mabry embezzled in 2002:

• $90,344.76 for the purchase of a 2002 Piper Malibu Mirage airplane

• $14,442 for insurance on the plane

• $2500 for repayment of a personal loan

• $51,500 for repayment of personal expenses on Mabry’s behalf

• $41,706.42 for a 2002 Lincoln Town car

• $95,500 for a 2002 Bentley Arnage and a 2003 Mercedes SL 500

• $395,000 deposited to Mabry’s personal bank accounts

The factual resume goes on to state that Mabry’s embezzlement was discovered in approximately 2003 by the other TMZ partners. To avoid a pending civil lawsuit filed by MTZ and a criminal investigation by the Dallas Police Department, Mabry signed a Release and Settlement Agreement in February 2004, agreeing to turn over various assets to MTZ.

Court documents state that on approximately August 7, 2003, Mabry filed his federal income tax return for 2002, reporting that he had $17,452 taxable income for 2002. Mabry admitted that the amount of taxable income reported on his income tax return was a material and false statement and that he had a legal duty to truthfully report his total salary and wages.

U.S. Attorney Roper praised the investigative work of the Internal Revenue Service - Criminal Investigation. The case was prosecuted by Assistant U.S. Attorney Erin Nealy Cox.

###