Monday, December 18, 2017
News Roundup

Feds reveal charges for Belleair businessman who eluded authorities for months

ORLANDO — Once among Tampa Bay's business elite, John Dargan Stanton III siphoned at least $15 million from the Seffner building supplies company he headed and created a fraudulent trail of documents to thwart the IRS, a federal indictment unsealed Monday said.

Stanton, 63, of Belleair, captured at an Orlando hotel Friday after nearly 10 months on the run, was indicted on eight federal charges — one count of obstructing the IRS and seven of failing to file personal and corporate income tax returns from 2005 to 2007.

A federal grand jury in Tampa handed up the indictment Aug. 15, but it was sealed until Stanton's arrest.

Stanton, looking tired but calm, appeared Monday before a U.S. magistrate judge for a first appearance in Orlando federal court dressed in a worn blue Orange County Jail jumpsuit with his legs shackled.

He showed no expression as U.S. Magistrate Judge Karla Spaulding read the charges against him. The judge ordered Stanton held without bail and he is expected to be quickly transferred to Tampa, where he will be tried.

Stanton whispered to his attorney, Paul DeCailly, but otherwise did not speak at the hearing.

DeCailly said he would eventually ask a federal judge in Tampa for a hearing to determine if Stanton should be released on bail pending trial. But Stanton was sentenced in absentia to six months in jail by a Hillsborough County judge for failing to pay his former wife millions in support, so bail seems unlikely.

Prosecutor Carlos Perez-Irizarry said Stanton has been in the Orlando area since May. "He has been harbored by some associates and friends," Perez said.

He said Stanton's girlfriend, who was not identified, had registered the room at the Fairfield Inn where Stanton was arrested.

Stanton is the former president of the building supplies company Cast-Crete Inc., which at one point earned $1 million a week at the height of the Florida building boom in 2006. He once claimed a net worth of $269 million, but said he was broke during an acrimonious divorce finalized in July 2011.

His ex-wife, Susan Stanton, said Stanton had hidden his wealth in a complex web of companies to avoid paying support. By the terms of a marital settlement, he owes his ex-wife more than $10 million.

In 2006 and 2007, the indictment said, Stanton wrote $15  million in checks off a Cast-Crete account to Denouement Strategies, a company he controlled. The money was above and beyond his Cast-Crete salary, prosecutors said. The indictment also said Stanton wrote $11.8 million in checks to an individual identified as R.W.H.

That is an apparent reference to Ralph W. Hughes, the founder of Cast-Crete who died of a heart attack in 2008 at age 77.

Hughes also was at the heart of a controversy involving state Sen. Jim Norman, whose wife in 2006 received a $500,000 loan from Hughes to purchase a home in Arkansas while Norman was a Hillsborough County commissioner. A federal investigation into the deal ended without charges.

The indictment unsealed Monday said Stanton created two fraudulent promissory notes falsely indicating the payments by Cast-Crete were interest on loans provided to the company. The documents indicated Denouement loaned $241 million to Cast-Crete, while R.W.H. provided $261 million.

Federal prosecutors said the notes were dated June 9, 2008, less than a month before Hughes' death. But Stanton then backdated the documents to Sept. 30, 2003, the indictment said.

Stanton then directed an unidentified person to file IRS documents on his behalf that falsely indicated the payments to Denouement and R.W.H. were interest on those loans, the indictment said.

Those tax filings indicated Denouement received a total of $25.3 million in "interest" payments, while R.W.H. got $25.3 million, from 2006 to 2008.

The indictment did not explain why the "interest" payments reflected in these tax documents differ from the money paid by checks to Denouement and R.W.H.

William R. Levesque can be reached at [email protected] or (813) 226-3432.

Comments
American Social tries to draw a young Tampa crowd with New York prices

American Social tries to draw a young Tampa crowd with New York prices

TAMPAPaul Greenberg and Rick Mijares believe something. They believe that millennials are nostalgic for a time they didn’t live through. American Social, the long-anticipated waterside restaurant adjacent to Jackson’s on Harbour Island, reads like a ...
Updated: 9 minutes ago
Police: Woman killed in Clearwater drive-by shooting while daughter, 10, in back seat

Police: Woman killed in Clearwater drive-by shooting while daughter, 10, in back seat

CLEARWATER — A Palm Harbor woman was killed in a drive-by shooting while riding with her husband and 10-year-old daughter in a Nissan Sentra late Sunday, police said.Elizabeth Rosado, 30, was in the front passenger seat of the sedan, which was headed...
Updated: 1 hour ago
Florida gas prices back to pre-Hurricane Harvey levels

Florida gas prices back to pre-Hurricane Harvey levels

Just in time for one of the busiest travel periods of the year, gas prices across Florida are back down to pre-Hurricane Harvey levels. Tampa Bay gas hit $2.30 per gallon today, while state prices averaged $2.37 per gallon, according to AAA, The Auto...
Updated: 2 hours ago
Tampa flights affected as Atlanta airport outage creates holiday chaos

Tampa flights affected as Atlanta airport outage creates holiday chaos

ATLANTA — While power has been restored to the world’s busiest airport, the travel woes will linger for days.Thousands of people were stranded Monday morning at Hartsfield-Jackson Atlanta International Airport, where more than 1,000 flights were gro...
Updated: 2 hours ago

Portion of Lutz Lake Fern Road closed after crash involving motorcycle

TAMPA — A portion of Lutz Lake Fern Road is closed in northwest Hillsborough County following a crash involving a motorcycleHillsborough County deputies say the roadway is expected to be closed between Sunlake Boulevard and Cypress Green Drive for th...
Updated: 2 hours ago
St. Pete man and dog were constant companions, in life and now in death

St. Pete man and dog were constant companions, in life and now in death

ST. PETERSBURG -- For more than a decade, Gerald Rittinger’s dog kept him alive.The Air Force veteran died on Dec. 3 at age 77. He is survived by his wife, Jeanne, who said she would have lost him 14 years earlier if not for their yellow Labrador, Ze...
Updated: 2 hours ago
Advocates push orca breeding law as SeaWorld’s policy appears murky

Advocates push orca breeding law as SeaWorld’s policy appears murky

The announcement was rolled out to the world as a pledge. A promise.In March 2016 SeaWorld declared it would end killer whale breeding, making the orcas in its care in the United States and abroad its last generation to live in captivity.Later that y...
Updated: 3 hours ago
The government admits it studies UFOs. So about those Area 51 conspiracy theories.

The government admits it studies UFOs. So about those Area 51 conspiracy theories.

For decades, Americans were told that Area 51 didn’t really exist and that the U.S. government had no official interest in aliens or UFOs. Statements to the contrary, official-sounding people cautioned, were probably the musings of crackpots in tinfo...
Updated: 3 hours ago
Rick and Tom podcast: Will Jon Gruden be the Bucs’ coach next year?

Rick and Tom podcast: Will Jon Gruden be the Bucs’ coach next year?

Jon Gruden will be inducted into the Bucs Ring of Honor tonight, but could it be more than just that as the Glazers may be looking for a new head coach come January? In their latest podcast, Rick Stroud and Tom Jones discuss whether Gruden would coac...
Updated: 4 hours ago

Missing Child Alert canceled for Homestead boy, 13

A Florida Missing Child Alert has been canceled for a 13-year-old Homestead boy.According to the Florida Department of Law Enforcement, John Noble-Sinclair had last seen Sunday in the area of 300 block of Southwest 4th Avenue.The case has been resolv...
Updated: 4 hours ago