PORTLAND, Maine (NEWS CENTER) -- The former CEO of the York County Community Action Corporation admits stealing nearly a million dollars from the agency.
In a press release, US Attorney Thomas E. Delahanty II announced that Thomas Nelson pleaded guilty to conspiracy, embezzlement, tax evasion and signing false tax return charges.
According to court records, Nelson diverted $413,000 in YCCAC funds to a consulting company that had only submitted one invoice for $8,700. In exchange for the fraudulent payments, the consulting company paid more than $20,000 of Nelson's personal expenses, including his home mortgage and also kicked cash back to Nelson. Prosecutors say Nelson also diverted more than $400,000 in YCCAC funds to a defunct non-profit entity and recorded those payments as donations or consulting expenses. He then used more than $300,000 of that money to pay personal credit card and home mortgage bills and to gamble. In all, Nelson admitted embezzling approximately $900,000 from YCCAC between 2004 and 2010.
Nelson faces prison time and fines of up to $600,000. As part of his plea agreement, Nelson agreed to pay restitution of about $1.2 million to YCCAC and about $150,000 to the IRS. He will be sentenced after completion of a pre-sentence report by the United States Probation Office.