A federal judge went beyond federal guidelines Wednesday in sentencing a Bel Air couple who ran a Harford County payroll services firm that defrauded small businesses of at least $2.5 million, funds that were intended for tax authorities
U.S. District Judge Marvin J. Garbis sentenced AccuPay Inc. owners Kevin Carden, 56, to six years and his wife, Beverly Carden, 54, to five years. The Cardens both pleaded guilty earlier this year to mail fraud and filing a false tax return.
Authorities said the scheme stretched over several years, taking money mostly from small, local business owners. The funds were intended for federal and state taxes. AccuPay collapsed in 2013 after authorities raided the business, which was later forced into bankruptcy.
Many of the victimized businesses were forced to pay back taxes and some even closed as a result of the fraud.
Prosecutor Jefferson McClure Gray asked the judge to consider that the scheme "involved dozens, if not hundreds of decisions," requiring the Cardens to repeatedly lie to clients, some of whom were their friends.
"One of the most remarkable things about this crime is the face-to-face duplicity," he said.
Gray noted that the couple used the funds to pay for their New Jersey beach house, private school and a membership to the Maryland Golf and Country Club.
He described how the case affected not only the business owners but employees and their families who missed out on raises and other benefits, and some of whom lost jobs, hurting the local economy.
Beverly Carden's public defender, Deborah L. Boardman, argued for a lesser sentence, describing her client's deep concern for the victims, and said the scheme was the result of trauma Carden experienced as a child.
Beverly Carden, who silently wept in court, stood briefly, telling the two dozen victims who attended, "I just want to say I'm sorry. I'm so so sorry."
Kevin Carden, who also spoke briefly during the hearing, said he wished he could undo the damage that had been done. He said he tried to look at each of the victims who spoke in the eye, but the hardest was a woman who had been friends with the couple and has since lost her home-remodeling business.
During the hearing, prosecutors called several witnesses, including a certified public accountant hired by Saxon's Diamond Center and the chief financial officer at DuClaw Brewing Co.
Both companies noticed discrepancies in their dealings with AccuPay. DuClaw's Carl "Rusty" Pachillis III described how he, his attorney, and two accountants confronted Kevin Carden after the Internal Revenue Service threatened to place a lien on its Arundel Mills property, which would prohibit it from renewing liquor licenses.
Two days later, he said, AccuPay paid the taxes.
Prosecutors said that AccuPay paid the tax bills of the larger companies in order to keep the scheme going.
"The Cardens stole from the poor to pay the rich," said Garbis, noting that the $690,000 they paid to DuClaw and Saxon was taken from the smaller businesses.
Michael Kasun, the owner of Clear Tree, a tree-care company based in Joppa, described how his business was set back by the scheme. He continues to pay the $72,000 his firm owes in back taxes.
"This has been an absolute nightmare for me and my family," he said.
Starting in early 2013, Kasun said, he began receiving notices from the IRS. He forwarded the notices to AccuPay, but he said Kevin Carden told him they were computer errors that were being corrected.
In the wake of AccuPay's collapse, Kasun said, he laid off an employee and has been unable to invest in his company. He said he has had to live off income of $900 a month while supporting his three daughters and young grandson at home. Kasun said he cannot pay for his daughter's July wedding, "something that I will carry for the rest of my life."
He spoke directly to the couple: "What you did was despicable. I don't know how you sleep at night."
Another victim, Cheryl Adams, said the Cardens were friends.
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As a result of the scheme, she and her husband lost their company, Adams Custom Remodeling, causing several employees to lose their jobs. Her husband was forced to find another job.
The hearing is scheduled to continue Thursday to determine restitution in the case. Garbis said he also would sentence the Cardens on Thursday for the tax offenses, which he said would run concurrently with the fraud sentences.
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