|Mother and two sons charged with tax evasion; two others arrested with similar charges|
By Debbie Dennie, Editor
Three arrests made locally and two warrants served on two men already incarcerated at Boone County Detention Center on November 18
“The Kentucky State Police (KSP) focused its investigation on determining if any state criminal offenses, other than theft (as this offense was being investigated by the FBI), were committed by Donna Wood,” stated KSP Detective Scott Lengle. “Also, KSP attempted to determine if Mrs. Wood’s immediate family committed any criminal offenses.”
As a result of the investigation it was determined that Donna Wood, acting as President and CEO of United Kentucky Bank, committed fraudulent insurance acts in 2008, 2009 and 2010. This charge has to do with forms she signed off on at UKB.
“Additionally, Donna Wood filed false personal state tax returns to the Kentucky Department of Revue from 2004 through 2010, said Lengle.
Kentucky State Police arrested Donna Wood, 51, of Falmouth on November 18. KSP went to the house where she was staying on Thursday evening, November 17 to serve a warrant, but no one answered the door. Wood turned her self into state police early Friday morning at the Pendleton County Sheriff’s office.
She was taken to the Boone County Detention Center. Wood is under a $20,000 cash bond or $40,000 property. She was released on bail November 19.
It was also discovered that Richard Thomas and William Brett Wood had provided multiple individuals a large sum of money during the time frame they were receiving stolen funds from their mother. These individuals, Geneva Hamilton, Floyd Rarrieck and Ricky Moore, were investigated and it was determined they too had been filing false state tax returns. Additionally, it was discovered that Floyd Rarrieck was obtaining controlled substances from area doctors without a practitioner/patient relationship, often times referred to as “doctor shopping.” A Grant County Grand Jury indicted Rarrieck for this offense.
KSP Trooper Mark Grisik went to the Boone County Detention Center on November 17, 2011 serving two warrants on Woods’ two sons, Tommy and Brett Wood, who are incarcerated on different charges. Both Tommy and Brett were charged with receiving stolen property, $10,000 or more; willfully filing/making false tax return or failure to pay tax and receiving stolen property under $10,000.
Bank examiners found where the money Wood embezzled from UKB was deposited into the accounts of her two sons and she and her husband’s account at the then UKB.
Son Richard Thomas Wood is serving a sentence of seven years for manufacturing methamphetamine, first offense, wanton endangerment, first degree; possession of a controlled substance;, first degree, first offense (meth.) and operating a motor vehicle under the influence of alcohol/drugs/etc. .08 (Agg Circum.), first.
Son William Brett Wood, 28, is also at Boone County Detention Center serving a five year term for unlawful possession of a meth. precursor, first offense.
“At this time the investigation remains open and further arrests are possible,” said Det. Lengle.
A civil lawsuit was filed in Pendleton County Circuit Court on Friday, March 4, by United Kentucky Bank’s attorney James Crawford.
The lawsuit asks the court to grant the plaintiff, UKB, judgment against, Donna J. Wood, Richard (Rick) A. Wood, William Brett Wood, and Richard Thomas Wood, jointly and individually, for monies taken by them from the bank.
Donna Wood pleaded guilty on August 22, 2011 in Eastern District Federal Court to embezzling and misapplying approximately $2,244,506.08 from March 2003 until January 26, 2011.
She is to appear back in federal court on December 12 for sentencing on the federal charges.
The family farm, equipment and items in the Wood home was seized and a absolute auction held a few months ago.
Bank directors were forced to sell UKB as a result of this large embezzlement. Bank of Kentucky has since purchased the bank.