Man ordered to repay charity bought home

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Associated Press

Posted on November 23, 2012 at 9:01 AM

LOUISVILLE, Ky. (AP) — A federal prosecutor says a Kentucky man who pleaded guilty to fraud and money laundering for taking money from a children's charity recently bought a new home in Louisville with cash.

Paul Barth was sentenced on Monday to three years and five months in prison and ordered to pay nearly $200,000 in restitution to the WHAS Crusade for Children and the McMahan Fire Protection District where he previously served as chief.

The Courier-Journal reported Wednesday (http://cjky.it/QxidUm ) that Barth recently sold a Florida condo and that he and his wife bought a home in Louisville last month with $266,500 in cash.

U.S. Attorney David Hale said in a statement that Barth should have paid the restitution when he had cash, instead of buying another home.

"It is deplorable that after admitting guilt and even asking the public for forgiveness, Mr. Barth still put his personal interests ahead of his victims," Hale said.

Because of that, prosecutors are asking a judge to prevent him from leaving the western district of Kentucky. They also want a full investigation into the real estate transaction and any other financial transactions "which would place any assets outside of the reach of the court."

His prison sentence is due to start within 45 to 60 days.

During his sentencing hearing, he told the court that he did not have the money for restitution and the government agreed to collect it once he sold a home in Louisville.

Attorney Thomas Clay, who represents Barth, said there is no violation of the plea agreement because Barth did what he was asked to do — pay the restitution or enter into a mortgage agreement.

When asked why he did not use the proceeds of his condo sale to pay his restitution, Clay said, "That wasn't his plan."

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Information from: The Courier-Journal, http://www.courier-journal.com

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