Cape & Islands News

Feds indict Jeffrey Windle on tax evasion

• First indictment amended to include tax evasion charges and forfeiture orders on all real estate, including houses in Dennis and Harwich Port
• Windle served 18 months in Federal prison for filing false tax returns 1o years ago
  

Federal prosecutors just filed a superseding indictment  (24 pages) against accused Harwich Port embezzler Jeffrey Windle.  In addition to containing 5 counts each of wire fraud, mail fraud, and money laundering (he was indicted on these charges on July 2), this new indictment contains  4 counts of tax evasion and also contains orders of forfeiture on all of Windle's real estate, including the houses at 346 Trotting Park Road in Dennis and 652 Main Street in Harwich Port. 

Jeffrey Windle, age 41, who was arrested May 2 on charges that he embezzled $14 million from his employer, Cambium Learning of Natick, and also $200,000-$400,000 from the South Dennis Congregational Church, where he served as a volunteer treasurer, has been in custody in the Plymouth County Correctional Facility since his arrest, where he is being held without bail.

Perhaps not coincidentally, a source from the South Dennis Congregational Church contacted me recently and informed me that their accountant is almost finished with their loss report and it is now over $800,000 that Mr. Windle allegedly embezzled from the church.  And he allegedly began stealing the church's money about 3 weeks after he became their volunteer treasurer.

Allegedly failed to pay taxes on both his legal and his illegal income

The most incredible thing about the tax evasion charges are not that he allegedly failed to pay taxes on his allegedly embezzled income of $12,444,766 as the indictment states, but that he actually under-reported his salary from Cambium Learning, where he was employed from 2004 until his arrest on May 2, 2008.    In other documents,  it has been stated that in 2004, Jeffrey was paid about $40,000 and that from the years 2005 on he was paid about $100,000 per year as Director of Budget and Finance.   A logical person would assume that he would file his income taxes like we all do and pay the taxes on his officially-stated income.

But, there is nothing logical about the Jeffrey Windle case.  Here's what he stated his income was on his federal taxes for these year (it's on page 20 of the indictment.)

• 2004: $43,736
• 2005: $8,362
• 2006: $9,984
• 2007: $42,300

We all know that the IRS is the long arm of the law.   Money you get from illegal activities is subject to taxation.   Since most people don't declare their income from illegal activities for fear of getting caught, the Feds can always get you on tax evasion charges once you're caught, even if you're found innocent.

Let's not forget that Jeffrey served 18 months in a federal boot camp-style prison and was  released on June 19th, 1998 (10 years ago) for filing false tax returns.   This is the scheme in which you file fake W-2s  stating you've made all this money and showing a lot was withheld, and then file for the refunds.  Blam, he got caught after getting refunds over two years of about $78,000.

Once can only conclude that Jeffrey Windle really, really, does not like to pay his Federal taxes.  

Coming very soon (I was almost finished with a blog posting about the below topics when this indictment came through :)

• Prior to church, the Windles' chaotic financial history included 4 bankruptcies, and 4 foreclosure threats by bank
  
• Windle's unkempt Florida compound is now referred to by neighbors as Jeffrey's Jungle (with pics)
• The Windles' sudden conversion to the Congregational Church
  
• Is Jeffrey a corporate psychopath?  Does he have OCD?
  

 All past blog postings on the Windle case:

U.S. Marshals Seize Indicted Embezzler's Property - 9/1/08

Jeffrey Windle pleads "Not Guilty" - 7/3/08

Windle charged by US Attorney with 15 counts - 6/28/08

Help requested in locating accused embezzler's assets - 6/13/08

Windle allegedly used Dennis church for money laundering - 5/26/08

$14 million in attachments filed in alleged Harwich embezzler case - 5/22/08

Alleged Harwich Port embezzler built lavish compound in Florida - 5/18/08

Alleged embezzler's attorney arrested for gun threat - 5/14/08

Accused embezzler's mark on Dennis - 5/12/08

Googleable: A Tale of Two Houses - 5/9/08