Surely he didn't think he'd ever get by with this? I must admit this one caused me to scratch my head. As a white collar crime and business ethics speaker, I've heard of a lot of schemes, but this is noteworthy.
Kenneth Gerald Bordewick was convicted of mail fraud and corruptly obstructing or impeding the due administration of the tax laws. Seems that Mr. Bordewick’s mother, Frances Norene Bordewick, operated a beauty salon, Norene and Company, in Antioch, CA. In 1993 and again in 1997, a Notice of Federal Tax Lien was filed against Frances Norene Bordewick/Norene & Co for outstanding employment taxes owed on her beauty salon.
Note: Mama didn't pay her payroll taxes. Sounds a bit like the Wisconsin man who was indicted for the same thing. But this story isn't about Ms. Bordewick. No, rather it's about her "come to the rescue" son!
The Crime: In November 2000, Mr. Bordewick assisted his mother with the sale of her condominium in Antioch. After receiving a preliminary title report, the title company requested a demand of payment from the IRS relating to federal tax liens. A notice of taxes due was submitted by the IRS Collection Division. In December 2000, the escrow company prepared a preliminary closing statement showing an estimated payment to the IRS in the amount of $87,251.30. In late January 2001, Mr. Bordewick told the escrow officer that his mother owed money on a mechanic’s lien.
On January 24, 2001, Mr. Bordewick recorded a fraudulent Certificate of Release of Federal Tax Lien at the Contra Costa County Recorder’s Office. Ten minutes later, a fraudulent Mechanic’s Lien against Frances Norene Bordewick’s property, in favor of Robert Morrison, Mr. Bordewick’s partner, was recorded in the amount of $50,000. That same day Mr. Bordewick submitted the fraudulent Certificate of Release of Federal Tax Lien and Mechanic’s Lien to the escrow officer causing her to not pay the IRS lien, but instead to pay Mr. Bordewick’s partner, pursuant to the Mechanic’s Lien. The escrow officer pursuant to Mr. Bordewick’s instructions mailed the proceeds of the sale, approximately $44,000, in nine checks made out to Robert Morrison at his residence with the defendant in Palm Springs.
Dumb...Dumb...Dumb! Every choice has a consequence! I still go back to the question, did he really think the IRS would be that dumb? Bordewick prepares fake paperwork, records it - then creates more fake paperwork in order to steal proceeds from the sales of his mother's property. Ouch!
In March 2001, an IRS Revenue Officer inquired about the status of the escrow and was advised by the escrow officer that payment had not been remitted to the IRS for the payroll taxes rather payment was made on a Mechanic’s Lien. You gotta know that the IRS was ticked to find this out. Not only did they not get the money due from the lien they filed, but money that was not payable to any other person was paid to Mr. Bordewick.
The outcome: For $44,000 Bordewick may be facing more than 20 years in federal prison. Surely he will go to prison and there learn that every choice has a consequence. No exceptions!
Oh...and wonder what Mama thinks now?