Clarksville Contractor Sentenced to 18 Months for Fraud Scheme

NEW ALBANY, IN—Gary V. Crowe, Sr., 71, Clarksville, Ind., was sentenced to 18 months in prison today by U.S. District Chief Judge Richard L. Young, following his guilty plea to defrauding the town of Clarksville, Indiana of more than $446,000. Crowe owned and operated a business known as the Jubilee Oil Company. The fraud arose from Crowe’s fraudulent sale of gasoline and diesel fuel from Jubilee Oil to the town of Clarksville. The fraud was initially discovered through detailed audits by the Indiana State Board of Accounts. The discovery prompted the Indiana State Police and the Federal Bureau of Investigation to join the investigation.

Jubilee Oil contracted to supply motor fuel to Clarksville between 2000 and 2006. Under the contract, Clarksville agreed to pay Jubilee Oil at the rate of sixteen cents ($0.16) more than the actual cost of the fuel delivered to Clarksville. The contract required Jubilee Oil to provide Clarksville with a copy of its supplier’s invoice as well as Jubilee Oil’s delivery tickets or invoices to allow Clarksville to determine that it was being properly charged for the fuel. This contract was highly favorable to Crowe because he did not actually have to deliver the fuel, but merely acted as a middle man.

Jubilee Oil actually purchased the fuel it supplied to Clarksville from Supreme Oil Company, Inc., in New Albany, Ind. Crowe would telephone Supreme Oil and place an order for a fuel delivery. Crowe would provide the date of delivery, the place of delivery, the type of fuel, and the amount of fuel required. Supreme Oil would then dispatch a tanker truck containing the fuel (diesel or gasoline) for delivery to various locations, including the police department, the street department, the parks department, and the Wooded View Golf Course.

Between February 11, 2003 and April 16, 2007, Crowe defrauded the City of Clarksville by fraudulently overcharging Clarksville for the amount and cost of the fuel actually delivered by Supreme Oil. As a result of the scheme, Clarksville overpaid Crowe and Jubilee Oil $446,643.07. To accomplish the scheme, Crowe personally prepared 350 false and fraudulent invoices over a six-year period.

According to Assistant U.S. Attorney Steven D. DeBrota, who prosecuted the case for the government, Crowe was ordered to pay full restitution of $446,643.07 to the town of Clarksville and $33,679 to the State Board of Accounts for their audit costs to uncover and investigate the fraud. Finally, Crowe was ordered to forfeit an additional $446,643.07 to the United States and pay a fine of $5,000.