Former Whitman Police Sergeant Sentenced to Prison for Embezzling Funds from Disabled Veterans
Defendant Also Operated Fraudulent Tax Preparation Business
BOSTON – A former Whitman, Mass. police sergeant was sentenced today in connection with misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans Affairs (VA) and for preparing false income tax returns for clients of his tax preparation business.
Glenn P. Pearson, 62, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 48 months in prison and three years of supervised release. Chief Judge Saris also ordered Pearson to pay $252,992 in restitution to the VA, and $826,865 in restitution to the IRS. In May 2017, Pearson pleaded guilty to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns, and obstruction of the Internal Revenue Service (IRS).
From 2007 to 2012, Pearson was appointed as a VA fiduciary for eight disabled veterans. Pearson took advantage of that position by misappropriating and embezzling VA-issued benefit money out of the accounts of several veterans for whom he served as fiduciary. Pearson used the embezzled funds for, among other things, paying down the mortgage on his house.
Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services, through which he prepared personal income tax returns, and amended returns, for clients. From 2012 to 2016, Pearson prepared numerous returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they were entitled to receive. When Pearson’s clients were audited by the IRS, Pearson took steps to obstruct the IRS – including making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits. Pearson also filed his own false income tax returns with the IRS that underreported his income.
Acting United States Attorney William D. Weinreb; Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division Stuart M. Goldberg; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; and Donna L. Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Assistant U.S. Attorney Vassili Thomadakis of Weinreb’s Criminal Divison and Karen E. Kelly, Assistant Chief at the Tax Division, prosecuted the case.