July 8, 2013

Swan lawyer unsure if she'll testify at Maine fraud trial

He says the ex-selectwoman never meant to defraud, but did what she had to do to survive in an abusive marriage.

By BETTY ADAMS Kennebec Journal

BANGOR – Carole Swan never meant to defraud anyone, she was just doing what she had to do to survive in an abusive marriage, her lawyer told the jury Monday, the first day of Swan's fraud trial.

Carole Swan

Staff File Photo

Marshall Swan

Staff File Photo

Swan, 55, a former Chelsea selectwoman, is charged with 10 counts of defrauding the federal government. The trial, which is expected to last about three weeks, began Monday afternoon in U.S. District Court.

Whether Swan will testify in her own defense remains in doubt. Her attorney, Leonard Sharon, said in his opening statement that she would tell jurors about her life and how she loved her work as a rural postal carrier until she was hurt on the job and loved her work as a selectwoman for 19 years because that allowed her to get out of her abusive home.

However, when the judge questioned him, Sharon said neither he nor Swan had decided if she will take the stand.

Chief U.S. District Judge John A. Woodcock Jr. warned that if Swan testified, she could be questioned about all the government's fraud accusations and would waive her Fifth Amendment right against self-incrimination.

The defense has more than a week to make that decision.

"The government has stood here and told you that every aspect of her life is a fraud: deceiving the IRS, deceiving workers' compensation and engineering a fraud on FEMA, contractors and the town," Sharon told the jury during opening statements, which started around 1 p.m.

Sharon said Swan moved in with Marshall Swan -- "a big, strapping man with a smile" -- three years after she graduated from high school.

"Behind the closed doors of the Swan home, that smile disappeared," Sharon said.

The government has charged Swan with five counts of fraud for allegedly underreporting more than $675,000 in income on 2007-2011 federal tax returns.

Assistant U.S. Attorney Donald Clark said Marshall Swan Construction had $24 million in income during those years and paid almost no income tax because Carole Swan claimed huge losses for a harness horse racing business. In court filings, Sharon said the business was actually her brother's, but the horses were bought in her name because of his bad credit.

Carole Swan is also charged with four counts of making false statements to obtain more than $205,000 in federal workers' compensation benefits; and one count of defrauding a federal program, in 2007, by inflating the cost of a culvert so Marshall Swan Construction, which she and her husband own, could win the project bid from the town of Chelsea.

Marshall Swan, 56, also of Chelsea, faces one count of aiding and abetting in that alleged fraud. He is also accused of income tax fraud.

He was scheduled to go to trial with his wife until Woodcock ruled Friday that Carole Swan's claims that domestic abuse affected her decision-making and behavior would deny him a fair trial. As a result, Woodcock separated the trials. Marshall Swan's trial has yet to be scheduled.

Clark, the prosecutor, said during opening remarks he will bring witness testimony and evidence to show Carole Swan was "lying about her income, her business associations and her work capacity." He said she engaged in a scheme to be sure Marshall Swan Construction would win the Windsor Road culvert project, and signed checks to pay for it on behalf of the town. Both Swans have denied all the charges.

Swan occasionally leaned over to whisper to her attorneys, Sharon and Cayleigh Keevan. Sitting with Clark at the prosecution table was Rodney Giguere, a special agent with the Internal Revenue Service.

U.S. Magistrate Judge Margaret Kravchuk, who supervised jury selection for Woodcock, warned jurors the trial would end no later than Wednesday, July 26.

 

Betty Adams can be contacted at 621-5631 or at:

badams@centralmaine.com

 

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