Crowe gets 18 months for defrauding Clarksville

Discussion

September 1, 2010

71-year-old was also ordered to make restitution, pay fines

By DAVID A. MANN David.Mann@newsandtribune.com The News and Tribune Wed Sep 01, 2010, 03:23 AM EDT

CLARKSVILLE — Gary Crowe Sr., owner of Jubilee Oil Co., was sentenced to 18 months in prison Tuesday after pleading guilty to defrauding the town of Clarksville of more than $446,000.

The charges arose from Crowe’s fraudulent sale of gasoline and diesel fuel from Jubilee Oil to the town. The fraud was initially discovered through detailed audits by the Indiana State Board of Accounts.

The discovery prompted the Indiana State Police and the Federal Bureau of Investigation to join the case. Crowe, 71, was sentenced in U.S. District Court in New Albany by Chief Judge Richard L. Young.

According to the state board of accounts audit report relating to the case, Crowe overcharged the town for fuel by altering price-per-gallon information on invoices from his suppliers. To accomplish the scheme, Crowe personally prepared 350 false and fraudulent invoices over a six year period, according to a press release from the court. The company also billed the town for 156,232 gallons of fuel that was never delivered, the report said. It would submit a handwritten delivery ticket showing the total gallons delivered, but not the tank meter readings to back up its numbers.

A town employee would sign for it but — because the tickets were not signed at the time of delivery — the employee had no way of verifying the number of gallons, the report said.

Clarksville had a contract with Jubilee from 2000 and 2007 but has gotten a new fuel provider since.

“I’m glad that’s behind us,” said Clarksville Town Council President Greg Isgrigg.

He said authorities have seized about $450,000 from an account Crowe had at financial firm Morgan Stanley. That money is being utilized to make restitution.

“Right now, we could use the money. It’s sad that it happened but we’ve changed the way we’re doing business,” Isgrigg said, noting that meters are now check during fuel deliveries.

That’s not all Crowe is paying.

U.S. Attorney Steven D. DeBrota, who prosecuted the case for the government, said Crowe was also ordered to pay $33,679 to the State Board of Accounts for its audit costs to uncover and investigate the fraud and forfeit an additional $446,643.07 to the United States and pay a fine of $5,000 to the court.

The press release called Crowe’s contract favorable to him because he did not actually have to deliver the fuel, but merely acted as a middle man. Jubilee Oil actually purchased the fuel it supplied to Clarksville from Supreme Oil Company Inc., in New Albany.

Crowe would telephone Supreme Oil and place an order for a fuel delivery. Crowe would provide the date of delivery, the place of delivery, the type of fuel and the amount of fuel required. Supreme Oil would then dispatch a tanker truck containing the fuel to various locations, including the police department, the street department, the parks department and the Wooded View Golf Course.

Text Only | Photo Reprints

Business/Money

River View gets a new option
As for progress, Bobo said he met with two banks Tuesday prior to the meeting. He added there’s been interest in financing the project from national lenders including U.S. Bank.
Additionally, Bobo said his team has meet with national investors as another source to fund the project and believes Mainland Properties could soon gain financial partners for River View.

May 23, 2012
Bridges project specifics emerging
Valentine outlined that incentives will be part of Kentucky’s contract with the winning bidder.
He explained that once construction begins, the expected cost of construction per day will total about $80,000 and the contractor can earn incentives for finishing early and penalties for finishing late. A completion date is set for June 30, 2018.

May 23, 2012
Spring Street Hill Road repair to begin around June 1
Councilman Bob Caesar, who sponsored the council measure and is a Silver Hills resident, said the reopening of Spring Street Hill road will be a “big deal” for the community.
“We just wanted to make sure this was done once and done right,” he said.

May 23, 2012 1 Photo
TARC OKs rate increases
Contrary to its monetary situation, the amount of people riding the public transit system has increased about 10 percent, Barker said.
But the transportation service had not raised its fares, aside from express routes, in four years.

May 22, 2012
Workshops on windows set for Thursday
Instructor Jack P. Patchin of Ol’ House Experts in Madison has more than 30 years of experience in construction and restoration. Patchin has restored wood windows for homes, barns, and outbuildings.

May 22, 2012
A bit less jump at the pump
Recent developments in the economic crisis in Greece and an apparent slowdown in China’s economy could be important to summer’s gasoline prices.

May 22, 2012
Jeffersonville budget cuts move forward
The action is not final, as officially the council has only approved a resolution instructing the city’s financial officer to advertise the cuts.

May 22, 2012 1 Photo
Corden Porter purchase tabled again
The council expressed other concerns, including the potential for asbestos in the building, the costs to cover utility payments and the costs to renovate the building.

May 22, 2012
Road work ahead: Projects under way in New Albany
The city earmarked about $600,000 of federal Community Development Block Grant funds to improve and install sidewalks. The project list, which has to focus on inner city areas because of CDBG regulations, is nearly finished, Rosenbarger said.

May 22, 2012
State takeover of failing schools meets resistance
Under the law, the state can step in and turn the failing school over to a private operator.
Seven schools in Indiana located in high-poverty school districts in Gary and Indianapolis are set to be taken over this coming school year.

May 22, 2012
More Business/Money Headlines

Business/Money

Search Results

Discussion

Crowe gets 18 months for defrauding Clarksville

71-year-old was also ordered to make restitution, pay fines

Site Map

Contact Us