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IRS enters prison food scandal investigation
Thursday, March 15, 2007 1:51 PM PDT
SALEM (AP) - The Internal Revenue Service is moving against what it says is more than $800,000 in ill-gotten gains from Fred Monem, the state prison food buyer accused of taking kickbacks and bribes.
The tax agency has publicly signaled its intent to apply federal forfeiture law to the following items seized in the investigation of Monem and his wife, Karen:
-Cash totaling $706,314.
-A 2006 BMW, a 2007 GMC Yukon Denali and a 2006 Chevrolet Silverado pickup, collectively valued at $117,790.
-A 14-karat diamond ring worth $9,500.
The forfeiture action can be contested by anyone who can provide documentary evidence of ownership interest, the IRS said.
“You must provide documentary evidence of your interest in the above property and explain the extent of your ownership interest,” according to the agency's public notice, published in Monday's Statesman Journal newspaper.
If no claim is filed by April 20, the IRS can declare the property forfeited and it will be divided among federal and local law enforcement agencies according to law.
It is not clear if any such claims have been filed.
Investigators allege that Monem, 48, and his wife, Karen, 43, accepted kickbacks and bribes from food vendors in exchange for him steering state food business to three companies. Neither has been charged amid an ongoing federal criminal investigation.
Federal law permits seizure of assets from criminal suspects if there is “a reasonable ground for belief of guilt.”
In the Monem case a federal search warrant affidavit written by an IRS investigator concluded that potential criminal charges include bribery, conspiracy, mail fraud, wire fraud, money laundering and filing a false federal income tax return.
Monem was fired Feb. 26 from his $75,000-per-year job. |