A Richmond man accused of keeping hundreds of thousands of dollars that were supposed to go into cash machines at Keeneland Race Course will be sentenced in September on charges of filing false income tax returns, according to court documents.
Larry Wilson pleaded guilty in June to four counts of filing false income tax returns for 2006, 2007, 2008 and 2009, according to records filed in U.S. District Court in Lexington.
In each case, Wilson filed a tax return "knowing his adjusted gross income was greater than" the amount listed, according to a plea agreement with federal prosecutors. The agreement doesn't contain figures of how much greater Wilson's actual income was. A superseding indictment filed in December said Wilson converted about $786,080 in cash to his personal use during his employment with Keeneland.
For each violation, Wilson faces a maximum of three years in prison, a fine of no more than $100,000 and a term of supervised release of no more than three years. The maximum term of imprisonment on all counts is 12 years.
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Wilson agreed to pay the Internal Revenue Service the amount of tax loss determined by the court at sentencing. Wilson also agreed to make "a full and complete financial disclosure" of all assets over which he exercises control, including those held by a spouse or other third party.
Wilson had no comment when contacted Friday. His lawyer, Christopher Spedding of Lexington, also had no comment.
The indictment said Wilson began servicing Keeneland's ATMs in July 2006. He had previously worked as director of security for a vendor that provided ATM services to Keeneland. He was hired by the track in 2006 when the racetrack began operating its own machines.
His duties included ensuring that the ATMs contained sufficient funds by periodically loading each ATM with $20 bills and conducting routine maintenance, the indictment said.
Keeneland operated a cash room to provide money for its business activities, and during his employment, Wilson made cash requests to get money for the ATMs, the indictment said.
The indictment said Wilson inflated his requests for cash and received more money than was needed to stock the ATMs. He then converted the extra cash for his personal use, the indictment said. Keeneland fired Wilson in May 2009.
Keeneland representatives have said in court records that Wilson was the only person who had access to the money in the machines. Wilson told the Herald-Leader in a 2010 interview that he was watched at all times and that at least two other people had access.
"I never took one dime from Keeneland," Wilson said in the 2010 interview with the Herald-Leader. "Here I am. You think I did it? Come and get me. Arrest me."
A federal grand jury indicted him in April 2013 on four counts of wire fraud, four counts of filing false income tax returns, three counts of money laundering and one count of committing wire fraud as part of money laundering. The alleged offenses date from 2007 to 2010, according to the indictment.
Under the plea deal, the counts on wire fraud and money laundering were dismissed.