EVANSVILLE, Ind. — A southern Indiana man will spend two years behind bars after he stole more than $1 million from his employer and dodged hundreds of thousands of dollars in taxes.
Brandon Alford, 47, of Washington, Ind., has been sentenced to two years in federal prison, followed by one year of supervised release, after pleading guilty to wire fraud, money laundering and five counts of tax evasion.
He was also ordered to pay $1,006,500 in restitution to the victim and $319,793.02 in restitution to the IRS.
Alford was working as a service writer for a heavy equipment supplier in Indiana from 2017 to 2023, according to court documents. He acted as a liaison between customers and service providers.
Authorities say that in 2017, Alford devised a scheme to defraud his employer by creating a fake company he called A&D Distributing LLC. He convinced a manager at a local machine parts retailer to sell parts to his employer through the fake company.
Alford claimed he would handle all logistics, including shipping the parts to his employer, while the retailer invoiced the employer for parts, plus a profit margin.
Between December 2017 and January 2023, Alford submitted 25 fraudulent invoices to the retailer for parts that were never ordered or delivered, according to the U.S. Department of Justice.
The retailer paid him $939,500 through 22 wire transfers to A&D Distributing's account. The retailer then invoiced Alford's employer based on these false invoices, resulting in the employer paying a total of $1,006,500 for non-existent parts.
Alford then attempted to cover his tracks by willfully failing to report the income he gained from the fraud scheme for tax years 2017 to 2022, causing a tax loss of $253,459.
“This defendant abused his position of trust and professional relationships to steal a million dollars from his unsuspecting employer, cheat on his taxes, and cover up his crimes,” said Zachary A. Myers, U.S. Attorney for the Southern District of Indiana.
“Tax evasion and financial fraud undermine trust and hurt real people,” said Ramsey E. Covington, Special Agent in Charge of the Chicago Field Office of IRS-Criminal Investigation. “Brandon Alford’s fraudulent scheme caused significant harm to his employer and evaded taxes owed to the government. IRS-CI will continue to work tirelessly with our law enforcement partners to hold criminals accountable for their actions.”
The FBI and IRS investigated this case. The sentence was imposed by U.S. District Judge Matthew P. Brookman.
