Date: Aug. 5, 2024 Contact: newsroom@ci.irs.gov Burlington, VT — The United States Attorney’s Office for the District of Vermont announced that Jodi Lathrop of Bristol, was sentenced today in United States District Court in Burlington to 15 months of imprisonment following her guilty plea to charges of wire fraud and federal tax evasion. U.S. District Judge William K. Sessions III also ordered that Lathrop pay restitution totaling approximately $479,000, pay a fine of $15,000, and serve a two-year period of supervised release following completion of her prison term. The court directed Lathrop to surrender to the Bureau of Prisons on September 10, 2024 to begin serving her sentence. In 2023, a federal grand jury returned a 19-count indictment charging Lathrop with 11 counts of mail and wire fraud; four counts of personal tax evasion; and four counts of aiding the preparation of false corporate tax returns. Lathrop pled guilty to one count of wire fraud and one count of tax evasion last December. In pleading guilty, Lathrop admitted that between 2014 and 2020, while serving as office manager and bookkeeper for Claire Lathrop Band Mill, Inc., a logging and wood chipping business in Bristol, she engaged in a scheme to embezzle from the business. Lathrop executed the scheme by using company credit cards to make personal purchases of goods and services; by using company funds to pay the personal credit card obligations of Lathrop and other family members; and by using company money to pay for other personal expenses. Lathrop concealed the embezzlement in several ways. Lathrop falsely recorded the unauthorized checks in CLBM’s books as checks for legitimate business expenses, wrote false notes on some checks so they appeared to be for legitimate business expenses, and caused CLBM to file false tax returns which falsely deducted Lathrop’s personal expenses as legitimate business expenses. This case was investigated by the Vermont office of IRS Criminal Investigation (IRS CI) and by Homeland Security Investigations. Lathrop was represented by Mark Kaplan, Esq. The prosecutor was Assistant United States Attorney Gregory Waples. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
