Little Rock lawyer gets five years in federal prison for stealing from trust | Arkansas Blog

Friday, August 22, 2014

Little Rock lawyer gets five years in federal prison for stealing from trust

Posted By on Fri, Aug 22, 2014 at 8:06 PM

David Patrick Henry Sr., 71, has been sentenced to 60 months in federal prison and two years of supervised release, plus ordered to pay $1.02 million in restitution for stealing from a trust.

The Justice Department said Henry owed $862,000 to the Joe Thomas Swaffar Irrevocable Insurance Trust and $159,000 to the IRS. A civil action will be filed to pursue forfeiture of Henry's property — including a home in Pleasant Valley Estates. The trust benefited a widow and her children, the news release said. It was established with $1.6 million in insurance policies on Joe Thomas Swaffar.

U.S. Attorney Chris Thyer said Henry had used his position as a lawyer to "hide his thievery from a family who trusted him. "As Trustee, Henry, Sr. devised a scheme in which he deposited funds from the proceeds of the Swaffar life insurance policies. Of these accounts, none of the bank statements were mailed to or could be accessed by the Trust beneficiaries, the news release said.

A jury convicted Henry in March  of 25 counts of mail fraud and three counts of tax evasion. Henry wrote checks on the accounts for himself and his family, including personal health insurance, electric bills, cable TV, mortgage notes for his sons, a vehicle for a son and other things. Henry claimed to have paid himself a salary of $2,000 per month for services allegedly performed as Trustee. However, the Trust document does not provide for a salary for the Trustee.

In addition, Henry filed joint federal income tax returns with his spouse for calendar years 2005, 2006, and 2007 that failed to report all his taxable income. According to the release: For 2005, Henry reported that his taxable income was $0 and tax due and owing was $0, when he knew his actual taxable income for that year was $400,063, resulting in tax due and owing of $114,085. For 2006, Henry reported taxable income of $1,037 when he actually had $55,871 in taxable income for that year, resulting in $7,626 in tax due and owing. Henry filed his 2007 return reflecting taxable income of $1,199, when he knew his actual taxable income was $81,211 for that calendar year, resulting in $13,154 in tax due and owing.

Tags: ,

From the ArkTimes store

Favorite

Comments (4)

Showing 1-4 of 4

Add a comment

 
Subscribe to this thread:
Showing 1-4 of 4

Add a comment

More by Max Brantley

  • An open line for Sunday

    An open line.
    • Sep 24, 2017
  • City plans more spending on 30 Crossing

    The Little Rock City Board meets Tuesday to set an agenda for the following week and among the "consent" items is a new $175,000 with Nelson/Nygaard consultants to "assist with a comprehensive review" of the 30 Crossing project, otherwise known as the bigger concrete ditch the Department of Transportation wants to tear through the heart of Little Rock.
    • Sep 24, 2017
  • NFL owners rise to defense of players against Trump and false patriots

    Many football team owners have risen to the defense of players against Donald Trump criticism as yet another racially fraught issue seems likely to gain increasing heat thanks to Trump's rhetoric.
    • Sep 24, 2017
  • More »

Readers also liked…

  • Charter school accountability: Non-existent in Arkansas

    A state audit finds charter school spending violated state law, but the state Education Department says it has no responsibility for ensuring proper management of charter schools. Say what?
    • Mar 5, 2016
  • Donald Trump declares war on Hillary Clinton's marriage

    Donald Trump gave a remarkable interview to the New York Times yesterday in which he declared open season on the marriage of Bill and Hillary Clinton and Bill Clinton's past infidelity. Seems like a loser, but I've been wrong before.
    • Oct 1, 2016
  • Policy group urges opposition to new charter seats in Little Rock

    The Arkansas Public Policy Panel is urging supporters of the Little Rock School District to tell state Board of Education members they oppose applications to be heard this week to dramatically expand the number of charter school seats in the Little Rock School District.
    • Mar 9, 2016

Most Shared

  • ASU to reap $3.69 million from estate of Jim and Wanda Lee Vaughn

    Arkansas State University announced today plans for spending an expected $3.69 million gift in the final distribution of the estate of Jim and Wanda Lee Vaughn, who died in 2013 and 2015 respectively.
  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation