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Posted: 8:22 p.m. Friday, Sept. 28, 2012
By Cornelius Frolik
The ex-husband of a former West Carrollton City Councilwoman pleaded guilty on Friday to criminal counts of conspiracy, evading currency-reporting requirements, defrauding the IRS, and Social Security and food stamp fraud.
As part of the plea agreement, Edward Claude Jones, 55, who is the ex-husband of the former Councilwoman, Jody Jones, faces as many as two years in prison and would be forced to pay a $300,000 judgment to the U.S. Treasury.
The crimes included in the five-count bill of information carried a maximum sentence of 18 years in prison and a $910,000 fine.
In the U.S. District Court for the Southern District of Ohio, Jones admitted that he bought and sold counterfeit goods, trafficked in food stamp benefits and conspired to hide the money he obtained from the illegal transactions.
Jones admitted also to filing an income tax return with the IRS using the name of a dead man, and using a Social Security number that belonged to a resident of Westerville, Ohio. He did this in an effort to launder the money from his criminal activities, officials said.
“Ed Jones is a white-collar fraudster,” said assistant U.S. Attorney Dwight Keller, who prosecuted the case.
Jones owned Arrow Battery, a business located at 3837 W. Alexandersville-Bellbrook Road in West Carrollton that sells scrap batteries and used forklifts. But he also worked at Jody Jones’ business, Inn Between Carryout, a convenience store in Moraine.
In February 2011, Jody Jones resigned from City Council after learning authorities were investigating her and her ex-husband. She has since married and has changed her name to Carmack. She pleaded guilty to three felony charges in January and was sentenced to three years probation and 180 days to home detention.
Between February 2009 and February 2011, Jones and his ex-wife bought from an undercover police informant counterfeit goods that they turned around and sold at the store. Ed Jones purchased also electronic food stamp cards from the informant, for about half the value of the food benefits they contained. Ed Jones bought more than $200,000 worth of stolen and counterfeit merchandise.
Ed Jones cashed also 12 checks, each worth more than $10,000, at his ex-wife’s store. The store was licensed to handle check-cashing services. Ed Jones failed to comply with federal law by not reporting currency transactions of that size.
Ed Jones filed an income tax return with the IRS claiming almost $99,000 in compensation by someone named Randy Banker, even though Banker was deceased. Ed Jones asked a customer of his Arrow Battery business, Battery Recycling Inc., to issue payment checks to Banker, and he provided the company with a Social Security number that he claimed was Banker’s, although it actually belonged to someone else. Ed Jones provided this information so the company would prepare and issue an individual tax return. Ed Jones created the fictitious person to try to conceal the revenue from his illegal activities, officials said.
“It was pretty sophisticated,” Keller said.
Ed Jones and his attorney declined to comment. But in court on Friday, Jones told U.S. District Judge Thomas M. Rose, “I just want to get this behind me.”
His next court appearance is scheduled for January.
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