This Month in Corruption: Bilking of Disabled Veterans a Notable Low

Ex-Cop Guilty of Misusing Funds for Disabled Veterans.  On May 16, Glenn P. Pearson, a former sergeant in the Whitman Police Department, pleaded guilty in connection with the misappropriation of funds from accounts owned by disabled veterans, the Office of Acting U.S. Attorney William D. Weinreb announced. 

According to Weinreb, Pearson crossed the line while serving as a fiduciary of the accounts.  From 2007 to 2012, he was a federally authorized fiduciary for eight disabled veterans.

A press release from Weinreb says that Pearson, age 60, admitted guilt to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns, and obstruction of the Internal Revenue Services.  He’s scheduled for sentencing on September 19, at which time he faces up to 20 years in prison and hundreds of thousands of dollars in fines.

 “Mr. Pearson abused his position as a fiduciary and took advantage of vulnerable members of our society,” Weinreb said.

Acting Deputy U.S. Assistant Attorney General Stuart Goldberg commented, “Glenn Pearson took advantage of disabled military veterans who could not manage their own financial affairs by diverting hundreds of thousands of dollars in VA (Veterans Administration) payments to his personal benefit.  He then used his tax preparation business to generate more than $1.5 million in bogus refunds and obstructed IRS audits looking into the fraudulent returns he prepared.”

“Mr. Pearson,” said Harold H. Shaw, special agent in charge of the FBI’s Boston field division, “now finds himself on the opposite end of the very laws he was once sworn to uphold,”

Former Police Officer Accused of False Statements on Gun Buys.  Adarbaad Karani, a former Boston police officer, was arrested on May 1 and charged in connection with illegally purchasing two firearms on behalf of acquaintances.

Karani, who is 37 and resides in West Roxbury, was charged in an indictment with two counts of making a false statement during the purchase of firearms and two counts of making a false statement in a record, according to a press release from the Office of the Acting U.S. Attorney, William D. Weinreb.

The indictment in the case states that, in November 2014 and September 2015, Karani acted as the “straw purchaser” of two firearms, acquiring them on behalf of acquaintances while falsely claiming the guns were for his official police use and not for re-sale.  One of the weapons, however, was found in the possession of an alleged member of the Columbia Point Dawgs when that person was arrested in November 2015, Weinreb’s office said.

If convicted of the charges, Karani faces up to 10 years in prison and a fine of up to $250,000.

Companies Cited for Underpaying Workers on Public Projects.  Three Massachusetts construction companies have, collectively, been cited more than $600,000 in restitution and penalties for failing to pay the proper prevailing wage rates to employees for work performed on public projects, as well as other violations of state wage laws, Massachusetts Attorney General Maura Healey announced on May 15. 

The parties cited by Healey’s office in the case are: Ronan Jarvis, former owner of MC Starr Companies, Inc.; DANCO Management, Inc., and its owner, Daniel Tremblay; and R&A Drywall and its owner, Allan S. Vitale.

The restitution and penalties in each case were: Ronan Jarvis, $325,053; DANCO Management and Daniel Tremblay, $293,812; and R&A Drywall and Allan S. Vitale, $62,359.

“Our prevailing wage laws ensure a level playing field for contractors who perform work for public entities, including municipalities, schools, libraries and housing authorities,” said Healey.  “When contractors skirt these laws, they not only cheat employees out of their wages, they undermine the competitive business environment of Massachusetts.”