U.S. Department of Justice
Sheldon J. (Shelly) Sperling
Sheldon.Sperling@usdoj.gov
United States Attorney
Eastern District of Oklahoma

For Release: July 18, 2008

For Further Information Contact: Sheldon J. Sperling, United States Attorney or

Doug Horn, First Assistant United States Attorney

MUSKOGEE, OKLAHOMA - Sheldon J. Sperling, United States Attorney for the Eastern District of Oklahoma, delivered checks totaling $1,088,948.41 this morning to members of the Marble City School Board.

“This proceeding renders the Marble City School District as whole as prosecutors can,” U.S. Attorney Sperling noted. “If there’s a silver lining here, it’s that the embezzled money wasn’t blown at a casino or race track or on something that sparkles, burns gas, and depreciates.”

“I understand that the Marble City fiscal year began July 1. We are hopeful that this restitution will enable the Marble City School District to invest immediately and wisely in the educations and futures of the Marble City students.”

“We were honored to meet with Superintendent Bill London and School Board Member Ramon Bolin. I am particularly grateful to Mr. Bolin for his persistence. We anticipate that these officials will work hard and proficiently, along with board members Felicia Edwards and Barry Spyres, to promote the educations of their students.”

District Attorney Jerry Moore observed, “Many of us are too familiar with the adage ‘justice grinds slowly.’  One of the reasons this case is exceptional is the swift and concise manner in which it has moved forward.  It’s nice, rewarding, to be a part of a collective effort that can move a case of this magnitude to this point in just over a year.  You can’t say enough positive about the federal prosecutors, the FBI, the Internal Revenue Service – Criminal Investigation Division, and the State Auditor’s Office. The individual agents from each of these agencies did an excellent job with a mountain of work.  Our investigators have also received my appreciation many times over.  Finally, our local office holders stepped up.  Mr. Bolin and Ms. Yates must be applauded loudly.  Without them – without their persistence and their sense of duty to their community and county, these crimes may have gone forever undiscovered.”

“First Assistant United States Attorney Douglas A. Horn and District Attorney Jerry Moore facilitated the presentations today,” stated U.S. Attorney Sheldon J. Sperling. “Doug was our lead federal prosecutor in this case. Jerry led the state prosecution. They worked meticulously – individually and together – to enable this outstanding result.”

“Federal Bureau of Investigation Special Agent Chris Headrick, Internal Revenue Service - Criminal Investigation Division Special Agent Marc Collins, and Oklahoma State Investigative Auditor Sherri Combs served diligently and honorably as case agents in this investigation.”

“On May 28, 2008, LARRY DUANE COUCH, age 55, of Vian, Oklahoma, pled guilty to three counts of Embezzlement of Government Funds, Making and Subscribing a False Tax Return and Forfeiture of $979,000.00.”

“The district court accepted COUCH’s guilty plea, and ordered the completion of a presentence report,” reported U.S. Attorney Sperling. “Upon its completion, sentencing will be scheduled. The defendant remains on bond, under the supervision of the United States Probation Office, pending sentencing.”

“Count One of the Information charged that the defendant, while Superintendent of the Marble City School District, embezzled and converted to his own use, property over the value of $5,000.00. The embezzled money was under the care of the Marble City School District, which received more than $10,000.00 in federal funding,” U.S. Attorney Sperling noted.

“Count Two states that the defendant, a resident of the Eastern District of Oklahoma, subscribed a 1040 United States Individual Income Tax Return, under penalties of perjury, which return was false. Count Two covers the tax year of 2003. During that tax year, the defendant claimed an adjusted gross income of $24,062.00. His adjusted gross income was actually $142,312.00.”

“Count Three is a forfeiture charge. The United States sought forfeiture of $979,000.00. The defendant has now returned the proceeds the defendant obtained as the result of the offense of embezzlement of government funds. The forfeiture count entitled the United States to seize any property, real or personal, which constitutes or is derived from proceeds traceable to the offense.”

“Count One is punishable by imprisonment not to exceed ten (10) years, a fine not to exceed $250,000.00, and a supervised release term of up to three (3) years. Count Two is imprisonable for a period not to exceed three (3) years, and a fine of not more than $250,000.00.”

“A signed plea agreement provided that the United States may seize properties until the total amount of the criminal forfeiture, $979,000.00, is completely satisfied. The defendant has tendered the following restitution payments to date:

• A check payable to the IRS in the amount of $50,000.00.
• A check payable to the IRS in the amount of $20,000.00.
• A Cashier’s Check payable to Marble City School in the amount of $109,948.41.
• A check drawn on the Law Office of Fourth Scoufos PLLC, Trust Account, made payable to Marble City School District in the amount of $100,000.00.
• A check payable to Marble City Schools in the amount of $879,000.00.

“The Marble City School Board is receiving a check today for $109,948.41. The school is hereby reimbursed both for the financial loss and for the payment of costs previously incurred to the State of Oklahoma for the costs of investigation.”