(FOR IMMEDIATE RELEASE)
 
 

Alexandria, Louisiana . . . KENNETH WAYNE AARON, age 44, former Natchitoches Parish Police Jury President and former owner of Aaron Insurance Agency in Natchitoches, Louisiana, who now resides in Baton Rouge, entered a guilty plea to four counts of filing a false income tax return for the tax years 1995, 1996, 1997 and 1998, United States Attorney Donald W. Washington announced today.  The guilty plea was entered in U.S. District Court before U.S. District Judge F.A. Little.  Sentencing has been scheduled for October 9, 2002.

In May 2000 Louisiana Legislative Auditor Daniel G. Kyle issued an audit report on the City of Natchitoches which alleged that ROBERT EDWARD MORROW, age 45, former General Manager of Traber Agency in Natchitoches, Louisiana, acting through Traber Insurance Agency, submitted to the City of Natchitoches fraudulently inflated invoices for insurance premiums, and administrative and consulting services.  The audit report stated that City checks made payable to Traber were endorsed by MORROW and converted to cash and bank money orders.  Part of these proceeds was received by KENNETH WAYNE AARON who knew of the fraud against the City of Natchitoches.  The report concluded that MORROW received $337,015 of the excess payments.  From June 1994 through November 1999, the City suffered a total loss of $585,316.

The audit report was referred to the United States Attorney’s Office and the Natchitoches Parish District Attorney’s Office for further review.

At today’s guilty plea hearing, IRS Special Agent Doris Schoelerman testified that over a four year period AARON failed to report total income of $141,241.50 as follows: additional income of $42,092.00 in 1995; $51,605.00 in 1996; $29,044.50 in 1997; and $18,500.00 in 1998.  Based on this unreported income, AARON should have paid $40,239.46 in additional federal income taxes.

MORROW pled guilty to four counts of Filing a False Tax Return on February 5, 2002.

Each count of Filing a False Tax Return has a maximum sentence of 3 years in prison, a $250,000 fine, or both.  Sentencing in federal court is governed by the United States Sentencing Guidelines.  Parole has been abolished in the federal system.

This case was investigated by the Internal Revenue Service, Criminal Investigation, Alexandria Office, and was prosecuted by Assistant U.S. Attorney Robert W. Gillespie, Jr.

 For further information, please contact United States Attorney Donald W. Washington at 337-262-6618 or First Assistant U.S. Attorney Bill Flanagan at 318-676-3600.

This and other press releases issued by the United States Attorney's Office for the Western District of Louisiana can be found at our website at www.usdoj.gov/usao/law.

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