Alaska's Ex-Treasurer Sentenced to 2.5 Years for Embezzlement and Tax Evasion

Former Alaska City Treasurer Sentenced for Wire Fraud, Money Laundering, and Tax EvasionPhoto byStock Image

By Kristy Tallman, July 10, 2024

Houston, AK -- An Alaska man has been sentenced to 30 months in prison for embezzling over $1 million from the City of Houston, Alaska, and a Wasilla-based equipment company. Jess Adams, the former Treasurer of Houston, was also found guilty of evading taxes on the stolen funds.

The case, which has drawn significant attention, began with an indictment by a federal grand jury in Anchorage on March 21, 2023. The indictment charged Adams with wire fraud, money laundering, and tax evasion for his actions spanning from 2015 to 2022. Court documents reveal that between 2015 and 2018, Adams exploited his role as Treasurer to transfer money from the city's bank account to his personal account. He masked these transactions as legitimate business expenses through fictitious entries in the city’s accounting records.

After being placed on administrative leave and subsequently resigning in late 2018, Adams took a bookkeeper position at an equipment company in Wasilla. He repeated his fraudulent activities, diverting funds from the company’s account to his personal accounts and using fake entries to conceal the theft. Adams further complicated matters by laundering the embezzled money through wire transfers exceeding $10,000 each.

In an additional attempt to evade detection, Adams, a former seasonal tax return preparer for a national tax advisory company, filed false tax returns from 2016 to 2021, omitting the illicit income. This tax evasion added another layer to his criminal activities.

Beyond his prison term, Adams must serve three years of supervised release and pay over $1.5 million in restitution to the United States, with additional amounts owed to the City of Houston and the equipment company. The case was announced by Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney S. Lane Tucker for the District of Alaska.

The IRS Criminal Investigation led the case, receiving substantial assistance from the Alaska State Troopers. The prosecution team included Trial Attorney Boris Bourget of the Tax Division and Assistant U.S. Attorney Tom Bradley for the District of Alaska.

By Kristy Tallman, July 10, 2024

The Republic News

Source: Justice Department’s Tax Division, U.S. Attorney’s Office for the District of Alaska

If you have a news story or video you'd like shared, email kristyznews@gmail.com.

#Fraud #MoneyLaundering #TaxEvasion #JusticeDepartment #AlaskaNews #HoustonAlaska #Wasilla #IRS #TaxDivision #USAttorney