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Justice News

Department of Justice
U.S. Attorney’s Office
Middle District of Florida

FOR IMMEDIATE RELEASE
Wednesday, November 13, 2019

OATH Corporation CEO Sentenced For Wire, Tax, And Bankruptcy Fraud

Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has sentenced David Martin “Marty” Golloher to three years in federal prison for wire fraud, tax fraud, and bankruptcy fraud.           

Golloher had pleaded guilty on August 30, 2019.

According to court documents and evidence presented during the sentencing hearing, Golloher was the President and Chief Executive Officer of OATH Corporation, a bullet-manufacturing company based in Brevard County. In that capacity, Golloher recruited individuals to invest significant sums of money in OATH Corporation. He defrauded one investor of nearly $70,000 by embezzling funds intended for corporate use. Golloher defrauded another individual of more than $40,000 by convincing him to purchase the rights to an “exclusive distributorship” that did not actually exist.

In addition, for six quarters in 2015 and 2016, Golloher collected payroll taxes on behalf of OATH Corporation employees, but failed to pay over that tax to the Internal Revenue Service. Golloher also failed to pay over OATH Corporation’s payroll tax obligations, resulting in a total tax loss of more than $458,000.

Eventually, Golloher filed for bankruptcy on behalf of OATH Corporation.  During the course of the bankruptcy proceeding, Golloher knowingly made a false declaration, understating the amount of compensation and personal expenses he had received from OATH Corporation. Golloher admitted that he did so with the intent to deceive OATH Corporation’s creditors, the bankruptcy trustee, and the bankruptcy judge.

This case was investigated by the Federal Bureau of Investigation, Internal Revenue Service – Criminal Investigation, and the Orlando Office of the United States Trustee Program. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.

Topic(s): 
Bankruptcy
Financial Fraud
Securities, Commodities, & Investment Fraud
Tax
Component(s): 
Updated November 13, 2019