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KWBB CW10 South Texas :: News - Top Stories - Calvin Walker declares victory following sentencing

Calvin Walker declares victory following sentencing

BEAUMONT-By: Leslie Rangel - Ferderal Judge Ron Clark read Calvin Walker's sentence around 11 Wednesday morning.


Walker was ordered to file all tax returns from previous years, hire a certified public accountatnt to keep track of all invoices and do 400 hours of community service. He must also pay $661,282 in restitution, a $60,000 fine for the government and $25 for a special fee.



Judge Clark says the hours will help Walker channel his energy to society more productively and less destructively.


Walker's supporters quietly cheered in the background in court.


Board members Mike Neil and Tom Neild say they are disappointed but his defense attorney and Walker are calling it a victory.


Walker will face no jail time and he can still work as an electrician for BISD and anyone else that gets tax dollars. Judge Clark said it's not the job of the federal court to act as an extra superintendent to handle BISD matters.  


"I was disappointed that he's going to be able to continue to do business with BISD but realistically I can't disagree with the judge, it's not the federal court's job to govern for BISD and it's not the judge's fault that BISD has a problem with governing itself." Mike Neil, BISD Board Member said.


Walker's defense attorney says the government's case was weak.


"With 37 counts of a fraud indictment and not a single count could the governement prove to allow Calvin to enter a plea to not timely payaing a part of his taxes. Also, that says a lot about the weakness of a case that was originally brought," defense attorney, Dick DeGuerin said.


Calvin Walker says he agrees and looks forward to going back to work.


While in court, Walker said it was never his intent to defraud BISD and the IRS.


EARLIER REPORT - BEAUMONT - A federal judge Wednesday morning sentenced BISD electrical contractor Calvin Walker, 51, to 5 years probation but no jail time, as well as 400 hours of community service on a charge of failing to pay taxes in a timely manner. He must also pay restitution of nearly $700,000 and a fine of $60,000. The judge didn't prevent Walker from continuing to work for school districts or other entities that receive tax dollars.


KFDM reporter Leslie Rangel was in court for the sentencing. Watch KFDM News and stay with kfdm.com for updates.


Judge Ron Clark didn't follow prosecutors' recommendation that Walker be barred from doing work for any taxpayer funded entity, including school districts. Judge Clark listened to arguments from prosecutors and said it wasn't his role to act as a superintendent in making such a decision.


Former BISD superintendent Dr. Carrol Thomas attended the hearing, as did BISD board members Tom Neild and Mike Neil.


KFDM reporter Leslie Rangel was in court for the sentencing. She says muted cheers of support could be heard for Walker from some of those in attendance.


Walker pleaded guilty July 17 to one misdemeanor charge of failing to pay taxes in a timely manner.


In exchange for the plea, Walker avoided a trial on charges including mail fraud, wire fraud and money laundering.



Prosecutors had accused Walker of overcharging the Beaumont ISD by millions of dollars.


According to the federal prosecutors, Walker failed to report as income on his 2009 tax return a check from BISD in the amount of $1,592,839.10 for the payment of materials, labor and equipment rental charges.


Prosecutors say Walker admitted that included in the wholesale invoices was an invoice in the amount of $382,975.32 which had been altered to reflect it was an invoice when in fact the document was a quote and not an actual purchase.


As part of the plea, Walker has agreed to forfeit $3.2 million of the annuities from which the tax liability and any fine will be paid. BISD may also request restitution from the remaining forfeited funds.


His first trial ended in a hung jury in December 2011.


BEAUMONT - From U.S. Attorney's Office - A 51-year-old Beaumont electrician has been sentenced for federal tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.



Calvin Gary Walker pleaded guilty on July 17, 2012, to failure to pay federal income taxes and was sentenced to 60 months of probation today by U.S. District Judge Ron Clark.



An Internal Revenue Service investigation stemming from the original FBI investigation of overbilling and submission of altered documents to the Beaumont Independent School District revealed Walker failed to report as income on his 2009 tax return a check from BISD in the amount of $1,592,839.10 for the payment of materials, labor and equipment rental charges.



According to information presented in court, Walker admitted in a signed factual basis submitted to the court that he was aware of the additional business income as it resulted from the submission of invoices to the BISD. Records from the BISD reflect that on Aug. 29, 2009, Walker submitted an invoice for labor, materials, and rental equipment in the amount of $1,592,839.10 for the electrical wiring of two temporary campuses. On Sep. 9, 2009, the BISD issued a check in the amount of $1,592,839.10 in payment of the invoice. Records of the BISD contained copies of bills of materials from third party electrical wholesale companies along with copies of unnegotiated checks drawn on Walker's bank account in the same amounts, payable to said wholesalers. Walker further admitted that included in the wholesale invoices was an invoice in the amount of $382,975.32 which had been altered to reflect it was an invoice when in fact the document was a quote and not an actual purchase. Walker's check payable to that wholesaler in the amount of $382,975.32 was never presented to the wholesaler or negotiated. Records of the BISD also contained similar altered documents purportedly from the same electrical supplier matching invoices submitted by Walker for materials in other projects.



Walker was also ordered to pay restitution of $661,282.00.



This case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Robert Rawls and Special Assistant U.S. Attorney Stephen Foster.


(July 17 ) BEAUMONT, Texas - From U.S. Attorney's Office - A 51-year-old Beaumont electrician has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.



Calvin Gary Walker pleaded guilty to an Information charging him with failure to pay federal income taxes today before U.S. Magistrate Judge Keith Giblin.



An Internal Revenue Service investigation stemming from the original FBI investigation of overbilling and submission of altered documents to the Beaumont Independent School District revealed Walker failed to report as income on his 2009 tax return a check from BISD in the amount of $1,592,839.10 for the payment of materials, labor and equipment rental charges.



According to information presented in court, Walker admitted in a signed factual basis submitted to the court that he was aware of the additional business income as it resulted from the submission of invoices to the BISD. Records from the BISD reflect that on Aug. 29, 2009, Walker submitted an invoice for labor, materials, and rental equipment in the amount of $1,592,839.10 for the electrical wiring of two temporary campuses. On Sep. 9, 2009, the BISD issued a check in the amount of $1,592,839.10 in payment of the invoice. Records of the BISD contained copies of bills of materials from third party electrical wholesale companies along with copies of unnegotiated checks drawn on Walker's bank account in the same amounts, payable to said wholesalers. Walker further admitted that included in the wholesale invoices was an invoice in the amount of $382,975.32 which had been altered to reflect it was an invoice when in fact the document was a quote and not an actual purchase. Walker's check payable to that wholesaler in the amount of $382,975.32 was never presented to the wholesaler or negotiated. Records of the BISD also contained similar altered documents purportedly from the same electrical supplier matching invoices submitted by Walker for materials in other projects.



Walker faces up to one year in federal prison. As part of the plea, Walker has agreed to forfeit $3.2 million of the annuities from which the tax liability and any fine will be paid. BISD may also request restitution from the remaining forfeited funds. Upon sentencing, any remaining charges will be dismissed. A sentencing date has not been set.



This case is being investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant U.S. Attorney Robert Rawls and Special Assistant U.S. Attorney Stephen Foster.


BISD electrical contractor Calvin Walker to be sentenced December 12


 

Calvin Walker declares victory following sentencing

Wednesday, December 12 2012, 08:38 PM CST
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