Press Release
BROWARD COUNTY SHERIFF CHARGED AND EXPECTED TO PLEAD GUILTY TO FRAUD CONSPIRACY AND TAX CHARGES
September 4, 2007
FOR IMMEDIATE RELEASE
R. Alexander Acosta, United States Attorney for the Southern District of Florida, Gerald Bailey, Commissioner, Florida Department of Law Enforcement, and Michael E. Yasofsky, Jr., Special Agent in Charge, Internal Revenue Service, Criminal Investigation ("IRS"), announced that defendant Kenneth C. Jenne, former Broward County Sheriff, has been charged in a four-count Information with one count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 371, and three counts of making and subscribing to false tax returns for the years 2001, 2002, and 2004, respectively, in violation of Title 26, United States Code, Section 7206(1). Defendant Jenne faces a maximum period of five years in prison on the conspiracy count and three years in prison on each of the tax counts.
The Information filed today in United States District Court in Ft. Lauderdale describes Jenne's scheme to personally enrich himself by obtaining monies from two vendors, identified in the Information as "P.P." and "L.N.," who were doing business with the Broward County Sheriff's Office ("BSO"). The Information also describes Jenne's subsequent efforts to perpetuate and conceal the scheme by, among things, making false and incomplete statements in a public filing and to investigators.
According to the Information, starting in 1999 and continuing through the present, BSO leased various office locations from real estate developer P.P. In April 2004, Jenne learned that he owed approximately $18,000 in additional income tax on his 2003 federal income tax return but that he did not have sufficient funds to pay it. Consequently, Jenne and BSO employee M.Y. agreed that M.Y. would obtain money from P.P. and give it to Jenne to pay his outstanding tax obligation. In this manner, Jenne sought to conceal that he was the true recipient of the funds.
Subsequently, in a May 2005 interview with FDLE investigators, Jenne falsely stated that he had no recollection about the $20,000 he had received from M.Y. in April 2004. In June 2005, one month after his interview, in an attempt to cover up the scheme, Jenne issued M.Y. a check for $21,200, which M.Y. used to repay P.P.
The Information further alleges that Jenne conspired with another BSO employee, identified as "A.V.," to obtain additional funds from BSO vendor L.N. and his companies. According to the Information, Jenne provided L.N. with access to off-duty Broward Sheriff's Office deputies, whom L.N. hired to do work for his companies. On two different occasions, in exchange for access to the deputies, Jenne is alleged to have instructed L.N. to pay money to Jenne's secretary, A.V. Jenne instructed A.V. to cash the checks given to her by L.N. and to have the cash deposited into Jenne's bank account. Jenne and A.V. did this in order to conceal that Jenne was the true recipient of the funds, which totaled $5,500. Once again, Jenne perpetuated this fraud and attempted to prevent its detection by mailing an incomplete and misleading annual financial disclosure form, which did not list his receipt of the payments from P.P. and L.N., to the Florida Commission on Ethics.
Counts 2 through 4 of the Information charge Jenne with failing to report certain specific items of income for the tax years 2001, 2002, and 2004. Included among the unreported items of income Jenne is alleged to have received during these years are third-party payments on insurance premiums, payment for home demolition expenses and consulting fees both received from P.P., and the $5,500 from L.N.
United States Attorney Acosta stated, "Ken Jenne has been a staple of South Florida government for decades. For many years, he served Broward County well. But he stayed too long, and in the end, he lost sight of what it means to serve the public. Through acts of fraud and deceit, he used his position as Sherriff to unjustly enrich himself, and for that criminal act, he now faces federal imprisonment."
"I'd like to express our thanks to U.S. Attorney Alex Acosta and his team for their partnership," said Florida Department of Law Enforcement Commissioner Gerald Bailey. "This has been a lengthy and complex investigation and we appreciate the outstanding cooperation our agencies have shared."
Michael E. Yasofsky, Special Agent in Charge of IRS Criminal Investigation Division stated, "Filing fraudulent income tax returns is not a victimless crime. Honest, hardworking Americans pay the price when others choose to evade their tax obligations. IRS-CID will continue to lend financial expertise to investigate public corruption and attacks on the tax system.
Mr. Acosta commended the investigative efforts of the Florida Department of Law Enforcement and the IRS. The case is being prosecuted by Assistant U.S. Attorneys Michael P. Sullivan and Matthew Axelrod.
Attachment:
Information (PDF)
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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