A former CRM Companies executive was sentenced to 12 months and one day in federal prison.
U.S. District Judge Greg Van Tatenhove handed down the sentence to Timothy Wayne Wellman, 66, of Versailles, on Thursday.
Wellman was convicted of 11 counts involving obstructing justice; aiding and abetting the obstruction of a federal grand jury; aiding and abetting the individuals in making false statements to the FBI after a five-day jury trial in February.
He was facing up to 20 years on the most serious charges and a maximum fine of $2.75 million.
Under federal law, Wellman must serve 85% of his prison sentence and upon his release will be under the supervision of the U.S. Probation Office for three years. In addition to his prison sentence, Wellman must also pay fine of $10,000.
In Frankfort, CRM Companies was the developer of the Mayo-Underwood Building and the 300 Building. CRM also is a partner in the planned development of Parcels B and C, former site of the Frankfort Convention Center.
According to testimony at trial, Wellman requested that multiple employees of CRM Companies (CRM) donate money to the campaigns of two Lexington city council members and then reimbursed them for their donation. He later asked the employees to give false information to the FBI, which was conducting an investigation into public corruption allegations, by encouraging the employees to lie about reasons for the reimbursement checks and, in some instances, asking them to create false documents (including ledgers and tax forms) to support their false stories.
“A jury convicted the defendant of obstructing justice by counseling others to lie and create false documents, and hiding the truth from federal investigators and a federal grand jury,” said Robert M. Duncan, Jr., United States attorney for the Eastern District of Kentucky. “Obstructing federal law enforcement and grand jury investigations undermines the foundation of our criminal justice system. We will continue to prioritize the investigation and prosecution of these important cases.”