Edward Scott Finn, 47
UPDATE – Edward Scott Finn, age 48, of Dunkirk, Maryland, pleaded guilty today to a federal tax evasion charge. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement and other court documents, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). According to the plea agreement and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
Finn admitted that he underreported a total of more than $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, Finn deposited checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also created false business expenses to lower his tax due by writing checks to relatives and friends for purported services performed; and used business funds to purchase a boat, a car, and other items for his personal use. This underreported income resulted in a total tax loss to the government of $367,765.
Finn admitted that on April 22, 2021, as federal agents announced their presence at his front door to execute a search warrant on his residence, Finn initiated the erasure and resetting of his cellphone. Finn then opened the front door to his residence and law enforcement recovered the phone in the master bedroom.
Finn faces a maximum sentence of five years in federal prison for tax evasion. As detailed in his plea agreement, Finn will also be required to pay restitution in the full amount of the loss, $367,765. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. U.S. District Judge Paul W. Grimm has scheduled sentencing for Finn on October 7, 2022 at 2:00 p.m.
United States Attorney Erek L. Barron commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Barron thanked Assistant U.S. Attorney Thomas M. Sullivan, who is prosecuting this case.
UPDATE: 9/4/2021 – A federal grand jury has returned an indictment charging Edward Scott Finn, age 47, of Dunkirk, Maryland, for the federal charges of tax evasion and obstruction of justice. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). SLEE is defined as “[e]mployment in which an employee is compensated by an entity other than the Prince George’s County Police Department for the performance of law enforcement or law enforcement related duties including (but not limited to) security, traffic direction, and parking enforcement.” According to the indictment and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
The six-count indictment alleges that Finn allegedly underreported a total of more than $1 million of EFI income on his 2015 through 2019 individual income tax returns. During that time frame, the indictment alleges that Finn deposited approximately $1,147,684 of checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also allegedly wrote checks from EFI bank accounts: to relatives for purported services performed for bookkeeping and to create false business expenses for purported security services; and to pay personal expenses, including credit card bills, car payments, and to purchase a boat. This underreported income allegedly resulted in a total tax loss to the government of $312,882.
Further, the indictment alleges that on April 22, 2021, Finn obstructed justice by initiating the erasure and resetting of his cellphone as federal agents executed a search warrant on his residence.
“The indictment alleges that a member of law enforcement with 25 years on the job failed to report more than $1 million in income that he earned through a private business, and then obstructed a federal investigation,” said Acting U.S. Attorney Jonathan Lenzner. “No one is above the law, and this indictment should serve as a stark reminder of that principle.”
“According to the charges, the actions of Edward Finn were not only illegal, but they also interfered with a federal investigation,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI and our law enforcement partners are committed to finding and bringing to justice those who engage in any financial scheme to defraud the American public.”
If convicted, Finn faces a maximum sentence of five years in federal prison for each of five counts of tax evasion and a maximum of 20 years in prison for obstruction of justice. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. Finn is expected to have an initial appearance in U.S. District Court in Greenbelt at a later date.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Thomas M. Sullivan and Thomas P. Windom, who are prosecuting this case.
GREENBELT, Md. – A federal criminal complaint has been filed charging Edward Scott Finn, age 46, of Dunkirk, Maryland, for the federal charges of attempting to evade or defeat taxes for tax years 2014 through 2019. Finn is a Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI). EFI employs off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties. Finn was arrested on April 22, 2021 and will have an initial appearance today at 1:30 p.m. before U.S. Magistrate Judge Gina L. Simms.
The federal charges were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell Waldon of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
According to the affidavit filed in support of the criminal complaint, Finn allegedly omitted a total of $1.3 million of EFI income on his 2014 through 2019 individual income tax returns. During that time frame, the affidavit alleges that Finn deposited approximately $1,397,295 of checks written for services from EFI into his personal bank account or into his children’s bank accounts. These security service deposits were not reported as income on EFI’s corporate tax returns for tax years 2014 through 2019, nor as income on Finn’s personal tax returns. This underreported income resulted in a total tax loss to the government of $484,281.
If convicted, Finn faces a maximum sentence of five years in federal prison for each of five counts of attempting to evade and defeat taxes. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Thomas M. Sullivan and Thomas P. Windom, who are prosecuting this case.