Washington, Indiana Man Sentenced to Two Years in Federal Prison for Embezzling Over $1 Million Dollars and Dodging Over $300,000 in Taxes

Press Release

EVANSVILLE- Brandon Alford, 47, of Washington, Indiana, has been sentenced to two years in federal prison, followed by one year of supervised release, after pleading guilty to wire fraud, money laundering, and five counts of tax evasion. Alford has also been ordered to pay $1,006,500 in restitution to the victim, and $319,793.02 in restitution to the IRS.

According to court documents, between 2017 and 2023, Alford was employed as a service writer for a heavy equipment supplier located in Indiana. In this role, he acted as a liaison between customers and service providers, one of which was a machine parts retailer located in Indiana that occasionally sold parts to Alford's employer.

In 2017, Alford devised a scheme to defraud his employer by creating a fake company, A&D Distributing LLC. He convinced a manager at the retailer to sell machine parts to his employer through A&D Distributing, positioning the retailer as a middleman. Alford claimed he would handle all logistics, including shipping the parts to his employer, while the retailer would simply invoice the employer for the parts, plus a profit margin.

Between December 2017 and January 2023, Alford submitted 25 fraudulent invoices to the retailer for parts that were never ordered or delivered. The retailer paid Alford $939,500 through 22 wire transfers to A&D Distributing's account. The retailer then invoiced Alford's employer based on these false invoices, resulting in the employer paying a total of $1,006,500 for non-existent parts.

Alford exploited his position at the company where he worked to ensure the fraudulent invoices were approved and paid, despite no parts ever being delivered.

Additionally, Alford attempted to cover his tracks by willfully failing to report the income derived from the fraud scheme for tax years 2017 through 2022, thereby causing a tax loss of $253,459.00. For each tax year, Alford took affirmative actions to evade the government, including preparing, signing, and filing false federal income tax returns, using a business bank account in the name of A&D Distributing to receive the fraud proceeds, and structuring transactions to avoid the filing of certain transaction reports.

"This defendant abused his position of trust and professional relationships to steal a million dollars from his unsuspecting employer, cheat on his taxes, and cover up his crimes," said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana. "Trusted insiders can cause tremendous damage to businesses large and small when they choose to lie and steal. Combatting economic crimes on behalf of Hoosier businesses and individuals is a top priority of federal law enforcement, and the serious prison sentence imposed here demonstrates the commitment of IRS-CI, FBI, and our federal prosecutors to aggressively prosecute financial offenses and hold fraudsters and tax cheats accountable."

"Tax evasion and financial fraud undermine trust and hurt real people," said Ramsey E. Covington, Special Agent in Charge of the Chicago Field Office of IRS-Criminal Investigation. "Brandon Alford's fraudulent scheme caused significant harm to his employer and evaded taxes owed to the government. IRS-CI will continue to work tirelessly with our law enforcement partners to hold criminals accountable for their actions."

"These are not victimless crimes. The defendant chose to intentionally create a false business and abuse his position of trust with his employer for his own personal gain and this sentence should serve as a deterrent to others," said Herbert J. Stapleton, Special Agent in Charge of the FBI's Indianapolis Field Office. "The FBI will continue to aggressively pursue those who seek to defraud others and ensure they are held accountable."

The Federal Bureau of Investigation and Internal Revenue Service- Criminal Investigation investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman.

U.S. Attorney Myers thanked Assistant U.S. Attorney Matthew B. Miller, who prosecuted this case.

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Updated December 12, 2024