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2-year undercover operation nets $325K for Trotwood police

Windfall comes from $1.2 million found in a business owner’s safe.

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By Marc Katz, Staff Writer Updated 8:02 AM Monday, November 7, 2011

TROTWOOD — A two-year undercover operation netted the Trotwood Police Department a $325,000 windfall from the federal government.

The IRS gave the police force the money — as well as allowed it to keep a van seized from its operation — that came from breaking up an illegal repair scam focused on elderly residents.

The proceeds came from $1.2 million that was found in a basement safe belonging to the business owner.

“We can’t say that million dollars came all from this,” said police Capt. Erik Wilson. “There is no way to determine how many people he defrauded. I believe he said it was an inheritance.”

For Trotwood police, it is believed to be the largest seizure of currency in the city’s history. There are no immediate plans how they will use the money.

“We’re using that money to help the community. We’ll put it to good use,” Wilson said.

It began in May 2009 on a tip from another repair-service company that seniors citizens were overpaying for and not receiving service to repair refrigerators and air conditioners.

Police suspected James D. Jackson of Butler Twp. had been duping residents with fake repairs. Not only that, some residents were confusing Jackson’s company —Allied Refrigeration — with Allied Services, owned by Mark Maruca in Trotwood.

Wilson said his office recruited an elderly couple to pose needing an air conditioner repaired and to call Jackson’s company.

On May 22, 2009, the police set up a sting operation using a working air conditioner.

While under police surveillance, Jackson charged the couple $1,069.95 for fake repairs.

Jackson was arrested. After a search warrant was obtained for his business — operated out of his home — police found a safe in his basement. Jackson told police he neither had the safe’s combination nor knew what was inside it.

Police used a crow bar to pry it open and found $1.2 million in cash stashed inside.

“That’s when we called our brothers from the IRS,” Wilson said, who worked with Detective Mike Pigman to track down the money case.

Jackson was indicted with three counts of felony theft in federal court. He pleaded guilty Nov. 30, 2010, to two federal charges: willfully fraudulent income tax returns with the IRS and structuring a financial transaction to evade the reporting requirements for a non-financial trade or business.

On Feb. 23, U.S. District Judge Timothy S. Black sentenced Jackson, 66, to three years probation, ordered him to forfeit the $1.2 million, make a $23,431 payment to the IRS, forfeit a 2008 Toyota Camry XLE and perform 20 hours of community service.

Trotwood police received control of Jackson’s 2006 Chevy conversion van, which is now used as the department’s forensic services and accident response unit.

“After an investigation, the agencies that worked on the case are given the money forfeited (if isn’t determined to belong to someone else),” Wilson said.

Maruca, whose Allied Services company has been in business 55 years (he has been with the company 35), said after the sting Jackson continued to operate Allied Refrigeration.

That’s not the case anymore, said Jackson’s son, Jeff.

“He’s retired,” said Jeff Jackson, who runs the company now. “And we’ve changed our name to Buckeye Mechanical.”

Contact this reporter at (937) 225-2157 or mkatz@DaytonDailyNews.com.

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