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( Herndon , VA ) - Jeffrey
S. Koger, age 39, of Herndon, Virginia, pled
guilty today to wire fraud and income tax
evasion. Dana J. Boente, United States
Attorney for the Eastern District of
Virginia; Assistant Attorney General Nathan
J. Hochman of the United States Department
of Justice’s Tax Division; C. André Martin,
Special Agent-in-Charge of the Internal
Revenue Service Criminal Investigation’s
Washington, D.C. Field Office; and Jeffrey
Irvine, Special Agent-in-Charge of the
United States Secret Service’s Washington
Field Office made the announcement after the
plea was accepted by United States District
Judge Leonie M. Brinkema.
Sentencing has been set
for February 6, 2009. Koger faces a maximum
penalty of 25 years imprisonment, $500,000
in fines, full restitution and three years
of supervised release.
According to a statement
of facts filed with his plea agreement,
Koger was the Chief Financial Officer for
Koger Management Group (KMG), which was the
property management company for
approximately 400 homeowners’ associations.
Between 2003 and 2006, KMG had a bank
account that received dues from homeowners
that KMG then distributed into the
associations’ individual accounts. On
approximately 140 occasions, Koger diverted
funds intended for the associations’
accounts into his personal accounts and that
of an account for an unrelated business,
Tri-Fitness in Annandale, Virginia, for
which he was also the chief financial
officer. During the period of time that
Koger was embezzling the money, he invested
at least $733,000 into a restaurant,
Jordan’s 8, in Washington, D.C., spent
almost $500,000 on remodeling his home and
the Tri-Fitness facility, and made down
payments of $60,000 on a house in New Mexico
and $40,000 on a Corvette.
According to the statement
of facts, Koger never filed personal income
tax returns for the years 2003-2006 and
evaded a total of $775,273 in federal income
taxes.
This case was investigated
by the Internal Revenue Service Criminal
Investigation and the Secret Service, with
assistance from the Fairfax City Police
Department, the Alexandria City Police
Department, and the Federal Bureau of
Investigation. Assistant United States
Attorney Jack Hanly and Trial Attorney Caryn
Mark of the Department of Justice’s Tax
Division are prosecuting the case on behalf
of the United States. |
