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Justice News

Department of Justice
U.S. Attorney’s Office
District of Massachusetts

FOR IMMEDIATE RELEASE
Tuesday, August 2, 2016

Former Whitman Police Sergeant Charged with Embezzling Funds from Disabled Veterans

BOSTON – A former Whitman Police Sergeant was arrested today and charged in connetion with misappropriating funds from the accounts of disabled veterans while he was a U.S. Department of Veterans Affairs-appointed fiduciary and for preparing false income tax returns for clients of his tax preparation business.     

Glenn P. Pearson, 60, was arrested today and charged in an indictment unsealed today with wire fraud, misappropriation by a federal fiduciary, making false statements, and preparing fraudulent tax returns.  Pearson was arrested today and released on conditions following an arraignment in U.S. District Court in Boston.

According to the indictment, from 2007 to 2012, Pearson was a U.S. Department of Veterans Affairs-appointed fiduciary for eight disabled veterans of the armed forces.  Pearson allegedly took advantage of his position to misappropriate and embezzle VA-issued benefit money out of the accounts of several veterans for whom he served as fiduciary.  Pearson allegedly used the money to, among other things, pay down the mortgage on his house.

Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services.  From 2012 through 2016, Pearson allegedly prepared numerous returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they actually were owed.  In addition, the indictment alleges that Pearson filed false personal income tax returns for himself from 2010 through 2014, and took steps to obstruct the IRS, such as by preparing false documents for his clients to submit to the IRS during audits.      

The charge of wire fraud provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  The charges of misappropriation of funds by a fiduciary and making false statements provide a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater.  The charge of preparing fraudulent tax returns provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000.   The charge of attempting to interfere with the administration of internal revenue laws provides a sentence of no greater than three years in prison, one year of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz; Principal Deputy Assistant Attorney General of the Justice Department’s Tax Division Caroline D. Ciraolo; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; and Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today.  The case is being prosecuted by Assistant U.S. Attorney Vassili Thomadakis of Ortiz’s Criminal Division and Karen E. Kelly, Assistant Chief of the Department of Justice’s Tax Division.

The details contained in the charging document are allegations.  The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

Topic: 
Financial Fraud
Updated August 2, 2016