July 24, 2013

Swans claimed negative $110,518 income in 2006, IRS official testifies

A former Chelsea town manager also claims Carole Swan exerted pressure outside selectmen's meetings to ensure her husband, who ran Marshall Swan Construction, got a lot of the town's road work.

By Betty Adams badams@centralmaine.com
Staff Writer

(Continued from page 1)

click image to enlarge

Carole Swan, left and defense attorney Caleigh Keevan are seen outside U.S. District Court in Bangor today, at the end of the second day of Swan's fraud trail.

Staff photo by Betty Adams

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One woman, however, Frances Simard, testified she dealt directly with Carole Swan when Simard bought a lot on McLaughlin Circle from her on Feb. 26, 2007.

Simard testified Carole Swan demanded that Marshall Swan be hired to do the ground work to prepare the property for a home, and that the $23,050, be prepaid.

"I had to do it at the closing or she wouldn't sign the documents for me to purchase the property," Simard said.

Simard said she repeatedly asked for a contract, but was only given a receipt for the check signed by Carole Swan. Simard said she located the receipt Monday night in her storage shed, so she brought it to court Tuesday.

Lionel Cayer, engineer for the city of Augusta, testified the city paid Marshall Swan $22,550 for work done on city streets October and November 2006.

The prosecutor, Assistant U.S. Attorney Donald Clark, asked several witnesses, including Simard, whether they had noticed Carole Swan having trouble with her right arm. All denied seeing anything like that. Carole Swan received federal workers compensation for years as a result of a shoulder injury suffered when she worked as a rural mail carrier for the U.S. Postal Service.

Swan wrote on several forms that she was disabled and could not work at all, including housework.

Clark also asked those who saw Carole and Marshall Swan together whether she appeared to be in fear of her husband. None said they noticed anything like that. Several said Carole Swan brought lunch to her husband while he was working for them.

There was a half-hour delay in the proceedings Tuesday morning when one of the jurors became ill.

When the trial resumed, one of the male jurors was absent.

Swan's trial on multiple counts of fraud began Monday afternoon in U.S. District Court in Bangor following a morning spent selecting eight men and seven women to serve as jurors and alternates.

At 9 a.m., just as a second witness was to begin testifying, the judge called a recess, telling those in the courtroom that he had received a note saying a juror was ill.

Shortly afterward, attorneys spoke to Chief Judge John A. Woodcock Jr. in chambers, and 30 minutes later, the trial proceeded with 12 jurors, and two alternates, seven men and seven women.

Woodcock told the remaining jurors that the ill man was receiving medical treatment and would not return to the panel.

By the end of Tuesday, the prosecution had called 22 of the witnesses on its list of more than 100 potential witnesses.

Betty Adams — 621-5631
badams@centralmaine.com

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