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Dothan Man Pleads Guilty to Federal Tax Evasion, Mail Fraud, and Drug Charges

February 24, 2023

From the U.S. Attorney’s Office, Middle District of Alabama:

 Montgomery, Alabama – Today, Kenneth Cherden Glasgow, also known as “Kenneth Sharpton Glasgow,” 57, from Dothan, Alabama, pleaded guilty to tax evasion, mail fraud, and drug conspiracy charges, announced United States Attorney Sandra J. Stewart.

According to the plea agreement and other court documents, Glasgow founded the Ordinary Peoples Society and the Prodigal Child Project, both 501(c)(4) nonprofit organizations. Glasgow solicited donations for these two organizations from other nonprofits and foundations, representing that he would use those donations for charitable purposes. Instead, as Glasgow admitted in his plea agreement, during the 2018 calendar year alone, he withdrew $407,450.00 in cash from the bank accounts of one of his nonprofit organizations and used the money for his own benefit. Because he used the money for personal expenses, he was legally required to report the funds as income on his tax return. However, Glasgow failed to even file a return for that year. Glasgow also attempted to conceal this activity by causing his tax preparer to complete inaccurate IRS 990 forms for Glasgow’s nonprofit organizations that vastly understated the income of the organizations and omitted the financial benefits Glasgow received from them. In his plea agreement, Glasgow specifically acknowledged committing this fraudulent conduct during the 2018 tax year. He also agreed to pay the IRS $376,720.00 in restitution for tax years 2016 through 2019.

During today’s plea hearing, Glasgow also admitted to mailing documents containing false statements to the Social Security Administration (SSA) so that he could continue receiving SSA disability benefits and related health benefits under the Medicare and Medicaid programs. Glasgow made written statements on various SSA forms describing his physical abilities and daily activities as being very limited, despite reporting on IRS 990 forms for his nonprofits that he worked 50 to 60 hours per week. In some SSA forms, Glasgow claimed that, due to physical limitations, he had difficulty driving and had to ride with someone. These statements were not true. In his plea agreement, Glasgow admitted that he leased a vehicle using funds from one of his nonprofits and listed himself as the sole authorized driver. In addition, between February 5, 2015, and August 11, 2020, Glasgow received traffic citations relating to approximately 27 different traffic stops, all of which indicated that Glasgow was the driver.

Glasgow also pleaded guilty today to conspiracy to possess cocaine with intent to distribute. According to the plea agreement, the drug conspiracy started with others at an unknown date and continued through August 2020.

Glasgow was indicted for the drug conspiracy charge in October 2021. The additional charges of tax evasion and mail fraud were recently filed on February 13, 2023. A sentencing hearing will be scheduled in the coming months. At that hearing, Glasgow will face a maximum sentence of 20 years in prison, along with substantial fines and restitution.

“Mr. Glasgow caused immeasurable harm,” stated United States Attorney Stewart. “Through his drug dealing, he released dangerous, addictive substances to the streets of his own community. By failing to pay his taxes and then fraudulently obtaining government benefits, he took from every American taxpayer. I am grateful to each agency involved in this investigation. Their combined effort ensures that the Dothan community is safer and that public funds will be put to the public’s benefit—instead of being put into Mr. Glasgow’s pocket.”

“Kenneth Glasgow’s actions not only endangered the community, but defrauded the American taxpayers,” said Paul Brown, Special Agent in Charge for the FBI. “His guilty plea should help to dissuade others from following this same path.”

“The guilty plea today serves as a notice to those who believe committing crimes comes with no consequences, it is only a matter of time before they are held accountable,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “IRS-Criminal Investigation is committed to bringing justice to those who try to avoid their federal income tax responsibilities.”

“Defrauding federal health care programs not only wastes valuable taxpayer dollars, but it also diverts resources meant to pay for medically necessary care for eligible enrollees,” said Tamala E. Miles, Special Agent in Charge with the Department of Health and Human Services, Office of Inspector General (HHS-OIG). “HHS-OIG is proud to work with our law enforcement partners to hold fraudsters who exploit these programs accountable.”

“For several years, Mr. Glasgow managed his non-profit organizations while pretending he had a qualifying disability with the Social Security Administration; he concocted this scheme to receive SSA benefits that he was not entitled to receive,” said Gail S. Ennis, Inspector General for SSA. “His guilty plea holds him accountable for theft and demonstrates that my office will continue to work to protect SSA benefits and taxpayer funds. I thank our law enforcement partners for their outstanding work in this investigation and the U.S. Attorney’s office for prosecuting this case.”

This case was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, IRS - Criminal Investigation, the U. S. Department of Health and Human Services, Office of Inspector General, and the U.S. Social Security Administration, Office of Inspector General, with assistance from the Dothan Police Department. Assistant United States Attorneys Megan A. Kirkpatrick, Stephen K. Moulton, and Brandon W. Bates are prosecuting the case.

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