COLUMBUS – The former director of the Guernsey County Community Development Corporation has pleaded guilty to a charge of criminal fraud in the United States District Court for the Southern District of Ohio in connection with the filing of a false statement of income.
The plea of Daniel Speedy, 60, of Cambridge, was accepted on Monday by trial judge Norah McCann King during a video conference after previously waiving his right to appear in person.
According to court documents online, the case will go to a district judge for plea approval and conviction after the completion of a pre-sentence investigative report ordered by King.
Filing a false income tax return carries a maximum penalty of three years in prison and a fine of $ 250,000.
Speedy was charged with a Level 4 felony by a briefing note filed with the Southern District Court on October 25.
The Internal Revenue Service’s criminal investigation unit reported that Speedy willfully failed to accurately report all of the income he had earned from various sources, including the CDC, on his individual tax returns for years. 2011 to 2015 tax.
“The defendant has omitted income from various sources,” said Special Agent in Charge Bryant Jackson of the Cincinnati Field Office of the IRS Criminal Investigation. “This case is a reminder that income from any source is subject to income tax, and those who intentionally omit their income will be subject to criminal prosecution.”
According to court records, Speedy was engaged by the Guernsey County CDC through his company, Monster Management LLC, to provide services including a contract manager from approximately January 2011 to July 2015.
During this time, Speedy controlled various financial aspects of the CDC.
The IRS Criminal Investigations Unit reported that Speedy filed his 2014 tax return alleging total income of $ 60,786 when he should have reported at least $ 1,116,671.
Omitted income included, but was not limited to, rental income, oil and natural gas royalties, overpayment income on sales of real estate, and gains on sales of real estate.
As a result of Speedy filing false income tax returns for the 2011 to 2015 tax years, the IRS suffered a tax loss of more than $ 444,934.25.
Online minutes from Monday’s hearing said Speedy said upon confirmation of his guilty plea that he was pleading this way because he “is guilty of this offense.”
Speedy was fired from his role as executive director by CDC’s board of directors in June 2015.
A civil case filed by the Guernsey County Community Development Corporation on September 13, 2016, against Speedy and the co-defendants One Percent LLC, Cambridge; Monster Management LLC, Lore City; Dora Speedy, Cambridge; David Karl Schaffner, New Philadelphia; Shaffner Law Offices Co. LPA, New Philadelphia; Whispering Pines Land Company LLC, New Philadelphia; Synergy Land Company LLC, New Philadelphia; Homestead Utica LLC, Lore City; Kimberly Allen, Cambridge; Gerald Leister, Cumberland; Bonnie Braden, Cambridge; Robert E. Oakley, Cambridge; Frank Fleischer, Palm Coast, Florida; and Kenneth Hill, Zanesville, is due on July 19, 2022 in Guernsey County Common Plea Court.
The federal case is being pursued by Assistant Deputy Criminal Chief Jessica W. Knight.
Court records show Speedy is represented by Martin Stanley Pinales and Stephanie Franxman Kessler of Pinales Stachler Young Burrell & Crouse Co. LPA of Cincinnati.
The terms of the negotiated plea were not available.
No sentencing date has been set. Legal counsel will have 14 days to review the pre-sentence investigation report once it is completed.