WASHINGTON
– Patricia Pauline Driscoll, the former executive director of the Armed Forces
Foundation, was found guilty by a jury today of charges stemming from a scheme
in which she stole from the non-profit charity, defrauded donors, and lied to
the Internal Revenue Service and the public about her salary and benefits.
The
announcement was made by U.S. Attorney Jessie K. Liu, Matthew J. DeSarno,
Special Agent in Charge of the FBI Washington Field Office’s Criminal Division,
and Special Agent in Charge Kelly R Jackson of the Internal Revenue Service
Criminal Investigation (IRS-CI) Washington D.C. Field Office.
Driscoll,
40, of Ellicott City, Maryland, was found guilty of two counts of wire fraud
and two counts of tax evasion, all federal offenses, and one count of first-degree
fraud, a District of Columbia offense. The verdict followed a trial in the U.S.
District Court for the District of Columbia. The Honorable Richard J. Leon
scheduled sentencing for a date to be determined in mid-March, 2019.
According
to the government’s evidence, until July 2015, Driscoll was the executive
director of the Armed Forces Foundation, a tax-exempt non-profit charity based
in Washington, D.C. The foundation’s
stated mission was to protect and promote the physical, mental, and emotional
wellness of military service members, veterans, and their families.
While
Driscoll was the executive director, in its promotions and requests for money,
the Armed Forces Foundation claimed that 95% of all donations went directly to
military members and their families through the charity’s programs. As a
“highly compensated individual,” Driscoll’s salary and benefits were required
to be disclosed on annual reports (called “Form 990”) to be filed each year with
the IRS. These publicly available documents are often used by charity watch
groups and donors to judge worthiness of the charity and by the IRS to
determine whether the organization was operating with IRS law and regulations.
According
to the evidence, Driscoll caused false reports to be filed on the Form 990s in
a number of ways. For example, she failed to include the fact that she received
commissions from fundraising, the amounts of commissions that she received from
fundraising, and the other benefits that she received. Driscoll also falsely
categorized and caused others to falsely categorize expenses in the Armed
Forces Foundation’s books and records as being for the benefit of the veterans,
troops, and their families, when, in fact, they were for her own private
benefit. Driscoll also concealed from the foundation’s accountants the money
she took from the charity, such as rent that was paid for the use of office
space in a building that she co-owned.
Additionally, Driscoll falsely reported and caused others to falsely
report the amount of donations received by the foundation on Forms 990, by
inflating the amounts of donations and incorrectly listing the types of
donations. According to the evidence, she sent false and fraudulent Forms 990
to members of the foundation’s Board of Directors and to the IRS, and caused to
be published Forms 990, containing false and fraudulent information.
The jury
found that Driscoll took the foundation’s money for her own personal use and to
pay her for-profit business expenses.
The tax evasion charges are for tax years 2012 and 2013.
The wire
fraud charge carries a statutory maximum of 20 years in prison. Tax evasion
carries a statutory maximum of five years. First-degree fraud carries a
statutory maximum of 10 years in prison. The maximum statutory sentence for
federal offenses is prescribed by Congress and is provided here for
informational purposes. The sentencing of the defendant will be determined by
the court based on the advisory Sentencing Guidelines and other statutory
factors.
In
announcing the verdicts, U.S. Attorney Liu, Special Agent in Charge DeSarno,
and Special Agent in Charge Jackson commended the work performed by Special
Agents from the FBI and Special Agents and Revenue Agents from the IRS. They also acknowledged the efforts of those
who handled the case for the U.S. Attorney’s Office, including Victim/Witness
Advocate Yvonne Bryant; Victim/Witness Services Coordinators Tonya Jones and
Katina Adams-Washington; Supervisory Paralegal Specialist Tasha Harris;
Paralegal Specialists Diane Brashears and Amanda Rohde; Forensic Accountant
Bryan Snitselaar; Assistant U.S. Attorney Diane Lucas; former Paralegal
Specialists Christopher Toms, Corinne Kleinman, and Kaitlyn Kruger; Litigation
Technology Supervisor Leif Hickling; former Litigation Technology Supervisor
Josh Ellen, and David Goodhand, Special Counsel to the U.S. Attorney, who
provided midtrial legal research and writing.
Finally, they
expressed appreciation for the work of Assistant U.S. Attorneys Virginia
Cheatham, Kathryn Rakoczy, and Derrick Williams, who investigated and
prosecuted the case.
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