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Arundel woman sentenced to 4 years for multiple charges which included financial misdeeds at Kennebunk children’s clinic
July 15, 2013
ALFRED – A former executive director of a clinic that provided mental health and developmental services to children has been sentenced in connection to a number of charges stemming from her mismanagement of that clinic. Mari Jo Allen, 42, of Arundel, Maine, was sentenced on Friday, July 12, 2013 to four years all but 20 months suspended and has been ordered to pay $76,561 in restitution.
Allen previously pled guilty on March 1, 2013, to charges of Forgery, Theft by Deception, Theft by Misapplication, Intentional Income Tax Evasion, Failure to File and Pay Income Taxes, and Unemployment Fraud. Many of the charges arose from her work as Executive Director at the former Pediatric Evaluations for Developmental Solutions Clinic (PEDS Clinic), in Kennebunk, Maine, a non-profit clinic that provided mental health and developmental services for children. At the sentencing hearing Allen also pled guilty to additional charges of Theft by Unauthorized Taking, Negotiating a Worthless Instrument, Theft by Deception, and Violation of Condition of Release. The Court also imposed three years of probation and ordered Allen to repay $76,561 in restitution, consisting of tax and benefit money stolen, plus interest, and money Allen stole from an employer.
Many of Allen’s crimes took place when she was working as the owner of an administrative services company, and then later as an Executive Director of the PEDS Clinic. This is when Allen stole employee withholding taxes (totaling more than $18,000). As the Clinic’s Executive Director Allen wrote herself approximately $200,000 in checks over an approximate 18 month time period, while failing to pay the Clinic’s doctors, clinicians, and insurers, as well as local vendors which provided products and services for the Clinic. She also forged a check purporting to show that the Clinic’s health insurance premium for its employees had been paid. The Clinic eventually had to close due to Allen’s mismanagement of its finances. Allen also committed intentional income tax evasion, beginning in 2005 and continuing through 2010, by filing fraudulent federal income tax returns. Since the Adjusted Gross Income figure on an individual’s federal income tax return is used on Maine income tax returns, Allen used that figure to avoid filing Maine income tax returns. As a result of her scheme, Allen failed to pay more than $17,000 in Maine income taxes during the period that she intentionally underreported her income and stole federal income tax refund money. After the PEDS Clinic terminated Allen for her mismanagement Allen filed false claims with the Maine unemployment commission. She stole almost $16,000 in unemployment benefits by claiming that she was not working, while she continued to earn money performing administrative services for local businesses.
While Allen’s criminal case was pending over the past year Allen stole more than $3000 from her most recent employer, used the employer’s credit card without permission to buy approximately $1,200 in personal items, and wrote the York County Sheriff’s Office a check for more than $1,000 knowing she had no money to cover the check. This case represents the continued effort by Maine Revenue Services and the Office of the Maine Attorney General to halt and prevent tax fraud and related financial crimes. “This case is an egregious example of someone who had no regard for their fellow citizens, coworkers or even the children and families who relied on the PEDS clinic. Our government relies upon citizens to file honest income tax returns just as a business entrusts its employees to safeguard payroll funds.” said Attorney General Mills. “My Office will continue to work with Maine Revenue Services to pursue and prosecute any individuals who attempt to defraud the state and individuals and take advantage of positions of trust in order to enrich themselves.” This case was investigated by the Detective Division of the Maine Attorney General’s Office and Maine Revenue Services’ Criminal Investigations Unit. Assistant Attorney General Gregg D. Bernstein handled this matter for Attorney General Mill’s Criminal Division.