Former Illinois State Senator, candidate for governor Sam McCann, charged with alleged fraudulent use of campaign funds, money laundering and tax evasion | USAO-CDIL

0

SPRINGFIELD, Illinois – A grand jury today indicted former Illinois State Senator Sam McCann with charges of fraud, money laundering and tax evasion related to his alleged misuse campaign money for personal use. The indictment alleges that from May 2015 to June 2020, McCann engaged in a scheme to convert more than $ 200,000 into contributions and donations made to his campaign committees to pay himself and make personal purchases, and that he concealed his fraud from donors, the public, the Illinois State Council of Elections and law enforcement authorities.

The indictment was announced by US Attorney General for the Central District of Illinois, John C. Milhiser; FBI Special Agent Sean M. Cox, Springfield Division; and, Acting Special Agent for IRS Criminal Investigations, David Talcott, St. Louis Field Office.

William Samuel McCann, Jr., 51, of Plainview, Ill., Was state senator for the 49e District of Illinois from 2011 to 2013, and for the 50 redesignede District from 2013 to January 2019. McCann formed the Illinois Conservative Party and in 2018 launched an unsuccessful bid for the governorship of Illinois. McCann previously lived in Carlinville, Ill., And owned and operated two construction-related businesses.

McCann has organized several political committees that have been registered with the Illinois State Council of Elections: Sam McCann for the Senate; Sam McCann for the Senate committee; McCann for Illinois; and, Illinois Conservative Party. According to the indictment, from April 2011 to November 2018, McCann and his political committees received more than $ 5 million in campaign donations.

The indictment alleges several instances where McCann used campaign funds to purchase personal vehicles, pay personal debts, make mortgage payments and pay himself, including:

  • McCann reportedly used more than $ 60,000 in campaign funds to partially fund purchases of a 2017 Ford Expedition in April 2017 and a 2018 Ford F-250 truck in July 2018, which he titled in his own name and used for his personal trips. McCann then used campaign funds for loan payments on the F-250 and for fuel and insurance expenses for the two vehicles, while using campaign funds to reimburse mileage charges he did not engage.
  • In April 2018, McCann reportedly used $ 18,000 in campaign funds to purchase a 2018 recreational travel trailer, and in May 2018, $ 25,000 in campaign funds to purchase a 2006 recreational motorhome, which McCann both referred to as in his personal name.
    McCann opened an online account with an RV rental company in Ohio and listed the vehicles for rent identifying Sam McCann as the owner. McCann then opened a second account with the same rental company and identified himself as William McCann, a potential tenant, with a different residential address and email address than those he listed as the owner. From approximately May 2018 to June 2018, McCann, while posing as a tenant, William, rented both the trailer and the motor home from Sam, the owner, through the rental company of VR. McCann arranged for a total of approximately $ 62,666 in campaign funds to be used to pay the cost of leasing the vehicles. The rental company withheld approximately $ 9,838 in commission and paid McCann, as the owner, approximately $ 52,827 by direct deposit to McCann’s personal checking account. McCann paid off campaign accounts for $ 18,000, which generated over $ 77,000 in campaign funds used to buy and rent himself.
  • On or around October 4, 2016, McCann allegedly used a $ 20,000 cashier’s check funded by a campaign account and issued for himself to repay a personal loan, including legal fees, which was originally issued to him at as an equipment loan in 2011 and was in collection by the bank for non-payment.
  • From May 2015 to August 2020, McCann reportedly used campaign funds to pay off approximately $ 64,750 on two separate personal mortgages that were secured by his former residence in Carlinville and an adjacent property used as an office for his construction business.
  • In November 2018, after an unsuccessful campaign for governor of Illinois, when he was no longer running for office and financially supporting no other candidate, and until June 2020, McCann reportedly made sure that the Illinois Conservative Party issue approximately $ 187,000 in payments to itself personally and an additional $ 52,282 in payroll tax payments. By using a payroll service, McCann could have gone into hiding as the beneficiary of campaign account expenses.
  • The indictment also alleges that approximately $ 50,000 of campaign funds were used for personal expenses, including Green Dot credit card payments related to a family vacation to Colorado and other personal expenses. , fees from Apple iTunes, Amazon, a skeet and trap club, Cabela’s, Scheels, Best Buy, an armory and cash withdrawals.

In addition to wire fraud and money laundering, the indictment accuses McCann of one count of tax evasion related to his joint filing for the 2018 calendar year. McCann allegedly failed to report his income. 2018 rental payments for the motorhome trailer and motorhome. Additionally, in March 2018, McCann used a check for $ 10,000 from a campaign account to make a down payment to a company in Shipman, Ill., For an RV. When the purchase was not completed, the company issued a refund check for $ 10,000 payable to William McCann, which he deposited into his personal checking account and failed to report. as income received.

McCann is scheduled to appear by conference call on February 16, 2021 at 2:00 p.m. before U.S. trial judge Tom Schanzle-Haskins for arraignment.

For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is over $ 200,000. If convicted, the legal penalty for each count of wire fraud (seven counts) and one count of money laundering can be up to 20 years in prison. In the event of tax evasion, the legal penalty can be up to five years in prison.

The charges are the result of an investigation by the FBI and the IRS criminal investigation. US Assistant Prosecutor Timothy A. Bass represents the government in prosecutions.

Members of the public are reminded that an indictment is only an accusation; the accused is presumed innocent unless his guilt is proven.


Source link

Leave A Reply

Your email address will not be published.