Curtis Gordon Jr., 39, Louisville, Kentucky, was found guilty October 22, 2010, on all counts of an eight-count indictment after a three-week jury trial. The jury convicted Gordon of three counts of filing false federal income tax returns, three counts of failure to file federal income tax returns, one count of bank fraud, and one count of submitting a false document to the Internal Revenue Service.
Count 6 of the Indictment charged that Gordon committed bank fraud in 2005 during the purchase of a $1.5 million home on 7210 Beachland Beach Road, Prospect, Kentucky. During the loan application process Gordon submitted a number of false documents to U.S. Bank in order obtain a $1.2 million loan. To obtain the loan, Gordon submitted false personal and corporate tax returns for years 2002 through 2004 and false W-2′s for 2002 through 2005. Both the tax returns and the W-2′s stated he reported hundreds of thousands of dollars of income to the I.R.S. during those years. When in truth the tax returns he filed with the I.R.S. only reported his Shively Police Department income. In addition, Gordon submitted fraudulent bank account records from another bank stating that he had balances of over $200,000 in two accounts when he actually had less than $1,000 in the two accounts.
Count 5 charged that on or about October 2005, during the purchase of 7210 Beachland Beach Road, Prospect, Kentucky, Gordon falsified I.R.S. Form 669-D, Certificate of Subordination of Federal Tax Lien, on which he falsely stated that the I.R.S. approved his purchase of 7210 Beachland Beach Road, Prospect, Kentucky, with a mortgage to U.S. Bank in the amount of $1.2 million. In truth the I.R.S. had approved his purchase of different house valued at only $280,000. Evidence was presented that Gordon concealed the purchase of the $1.5 house in order to avoid paying a $31,000 tax lien.
Counts 1 through 3 of the Indictment charged Gordon with filing false federal income tax returns with the Internal Revenue Service for years 2003, 2004, and 2005. Counts 4, 7, and 8 charged Gordon with failing to file federal income tax returns for 2006, 2007, and 2008. Proof was presented that Gordon also failed to file his 2009 federal income tax return. Evidence at trial proved that Gordon owned and or operated four different security companies, Commonwealth Security, CSI Security, Kentucky Protection and Patrol, and United Protection and Patrol. Gordon did not report income totaling over $1,000,000 for calendar years 2002 through 2008. Amongst other things, Gordon‘s income consisted of salary, $7,000 monthly mortgage payments, payments for several cars, including a Corvette, Mustang, and Navigator, and boat payments. Gordon ceased filing personal federal income tax returns after filing is 2005 tax return.
United States Attorney David J. Hale announced the verdict.
“This verdict is the result of a great deal of hard work by our federal prosecutors, the Criminal Investigation Division of the Internal Revenue Service, and the Treasury Inspector General for Tax Administration. Tax fraud is a serious offense that ultimately impacts not only the Treasury but all citizens who honestly pay their share of income taxes.”
The case was prosecuted by Assistant United State Attorneys Bryan Calhoun and David Weiser. It was investigated by the Criminal Investigation Division of the Internal Revenue Service and the Treasury Inspector General for Tax Administration.
“The verdicts today confirm that all U.S. citizens have an obligation to timely and accurately file their U.S. Tax Returns each year. Nobody, including those that work in public trust and law enforcement positions, are above the law. The fine and dutiful work of these jurors and federal prosecutors sends a strong message to the public that using tax dollars to fund personal purchases including a luxury residence, sports car, and speed boat is not acceptable and will not be tolerated” said Christopher R. Pikelis, Special Agent in Charge of the Internal Revenue Service Criminal Investigation Nashville Field Office.