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The court was unconvinced and sentenced petitioner to 60 months
in prison and a fine of $100,000.
At the sentencing hearing, Agent David Gannaway, the primary
Internal Revenue Service agent for this matter, testified
regarding his investigation of the illegal gambling operations.
He submitted a report consisting of a spreadsheet summarizing the
figures used in the nightly financial reports prepared by
petitioner. Relying on figures in the financial reports, he
determined the amounts petitioner and Hood received from the
bingo games operated from 1994 through 1997. He then computed
the profit for petitioner and Hood based on what he concluded
were the profit splits between the charities, petitioner, and
Hood. For JVFD and the Ruritan Club, he concluded that
petitioner and Hood’s percentage of the proceeds was not fixed
but varied from 40 percent to 70 percent based on attendance. He
further concluded that petitioner and Hood’s percentage of the
proceeds relating to Handicaps Unlimited was 80 percent.
In the report, Agent Gannaway concluded, and Hood agreed,
that petitioner and Hood received $1,181,560 from 1994 to 1997.
This amount was reduced to $777,896 after deducting the amount he
concluded that petitioner and Hood received for rent and
supplies. Although Hood did not know if $777,896 was accurate,
he requested that the Government reduce its determination of the
net amount received to $700,000 and asserted that all proceeds
were split evenly with petitioner. In response, the Government
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Last modified: May 25, 2011