Dothan Man Sentenced for Federal Tax Evasion, Mail Fraud, and Drug Charges
Jul 10, 2023
From the U.S. Attorney’s Office, Middle District of Alabama:
Montgomery, Alabama – On July 6, 2023, Kenneth Cherden Glasgow, 58, from Dothan, Alabama, was sentenced to 30 months in federal prison for tax evasion, mail fraud, and drug conspiracy charges, announced United States Attorney Sandra J. Stewart. The judge also ordered that Glasgow serve three years of supervised release following his prison term and pay the IRS $376,720.00 in restitution. Glasgow pleaded guilty to the crimes on February 24, 2023.
According to court documents, Glasgow founded two nonprofit organizations, The Ordinary Peoples Society (TOPS) and Prodigal Child Project (PCP). He then solicited donations from other nonprofits and foundations, representing to them and to the IRS that he would use those donations for charitable purposes. Instead, Glasgow withdrew $407,450.00 in cash from the accounts of one of his nonprofit organizations during the 2018 calendar year alone. Glasgow used the money for his own benefit, and as a result, was required to report the funds as income on his tax return. However, Glasgow failed to even file a return for that year. In an attempt to conceal this activity, Glasgow provided erroneous information to his tax preparer, causing the preparer to complete IRS forms for Glasgow’s nonprofit organizations that vastly understated the income of the organizations and omitted the financial benefits Glasgow received from them. From 2016 to 2019, Glasgow withdrew a total of $1,300,848.54 in cash from TOPS and PCP, never accounting for that money on the nonprofits’ IRS forms or on any tax returns of his own.
Glasgow also mailed documents containing false statements to the Social Security Administration so that he could continue receiving Social Security disability benefits and related health benefits under the Medicare and Medicaid programs. These statements described his physical abilities and daily activities as being very limited, despite reporting that he worked 50 to 60 hours per week for his nonprofits on the nonprofits’ IRS forms. In some SSA forms, Glasgow claimed that his physical limitations were so severe that he had difficulty driving and had to ride with someone. These statements were not true. Court records show that Glasgow admitted to leasing a vehicle using funds from one of his nonprofits and listed himself as the sole authorized driver. In addition, Glasgow received traffic citations relating to approximately 27 different traffic stops between February 5, 2015, and August 11, 2020. All of the citations indicated that Glasgow was the driver.
Glasgow’s sentence also included a charge for conspiring with codefendant Willie Frank Peterson, 50, also from Dothan, to possess cocaine with intent to distribute. Peterson pleaded guilty to his involvement in the drug conspiracy on March 14, 2023. According to Peterson’s plea agreement, Glasgow agreed to purchase cocaine from Peterson in 2018 and 2019. Peterson’s sentencing hearing is currently scheduled for August 2, 2023.
The DEA, the FBI, IRS – Criminal Investigation, the U. S. Department of Health, and Human Services – Office of Inspector General, and the Social Security Administration – Office of Inspector General, investigated this case, with assistance from the Dothan Police Department. Assistant United States Attorneys Megan A. Kirkpatrick, Brandon W. Bates, and Stephen K. Moulton prosecuted the case.
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