By Jerry Jordan, Editor
WASHINGTON DC – Jurors in the federal criminal trial of Patricia Pauline Driscoll, former head of the Armed Forces Foundation (AFF), return to the courtroom Monday as prosecutors begin their case with their first witness explaining how Driscoll defrauded the military support charity she ran for personal gain.
Driscoll is facing a seven-count federal indictment alleging two counts of wire fraud, two counts of mail fraud, one count of tax evasion for 2012, one count of tax evasion for 2013 and one count of first-degree fraud. Originally, Driscoll faced an eight-count indictment but the first count of interfering with the administration of IRS laws was dismissed.
Click for Patricia Driscoll Indictment – Sept 20, 2016
Click for Patricia Driscoll Notice of Plea Offer from U.S. Attorney
Click for U.S. Attorney’s Trial Memo
Click for FBI’s Application For Search Warrant for Armed Forces Foundation
Click for FBI’s Application for Search Warrant for Frontline Defense Systems
Click for U.S. Attorney’s Notice of Expert Testimony
It took two days to cull the 70-person panel to 16 jurors for the case (12 jurors plus four alternates, which are unknown to the jurors themselves). The racial make-up of the jury appears to be 10 African-Americans, four Caucasians, one Asian and one Hispanic. U.S. Judge John R. Leon said the court is keeping the alternates, which were chosen randomly, anonymous so that all would pay close attention to testimony.
Over the next six to eight weeks federal prosecutors intend to show Driscoll was a manipulative bully who lied to donors, the IRS, the charity’s board of directors and used more than $500,000 to pay her personal expenses, buy jewelry, alcohol, personal items and business expenses. The court will be in session Monday through Thursday, except on federal holidays, until the case is concluded and will meet only on Monday and Tuesday during the week of Thanksgiving.
Driscoll is the former girlfriend of NASCAR Cup Series champion Kurt Busch and used his status and connections to NASCAR to solicit money and other donations for the AFF. During the jury selection process, known as Voir Dire, Judge Leon asked jurors if they would be swayed one way or the other by the mentioning of Busch or NASCAR. He said Busch was not expected to be called as a witness for either side in the case. No one raised their hand to indicate they would be influenced by the references.
Brian Stolarz, who represents Driscoll, admitted he was using a “bad NASCAR pun” but that Driscoll was, “the engine that drove the Armed Forces Foundation” and “took it to new heights.” Stolarz claims Driscoll is a victim of circumstance, so to speak, in that she “trusted” professionals to help her with financial matters of the foundation and they not only took advantage of her naiveite, some conspired to bring her down.
“If it were all like the government said, we could all go home,” Stolarz said, in his opening remarks to the jury. “She is a scrappy hustler, not the criminal the government wants to make her out to be. She is not a non-profit expert. She created a Troops to the Track program that was an experience of a lifetime for military members and you will hear from a NASCAR representative who will tell you how meaningful this was to the troops.”
Stolarz listed a number of programs Driscoll created that allowed troops and their families to travel to Las Vegas, stay in luxury hotels, attend special comedy shows with superstar comedian Ron White and how she convinced FOX and the NFL to make the AFFF “their charity of the year.”
Click for Defense List of Expert Witnesses
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Stolarz said Driscoll hired experts to help her with the finances; consulted with a non-profit expert, who was on the AFF’s board of directors; and relied on people to do their job. He explained that everything was going great for Driscoll until 2012. He added that, based on her employment contract, Driscoll is still owed money by the AFF in excess of anything the government claims she has stolen.
“It all came crashing down in September 2014. Her NASCAR boyfriend choked her and backed her against a wall,” Stolarz told the jury. “The man she loved put his hands on her. She was devastated but she was not taking it anymore and she got a restraining order. He was suspended by NASCAR and missed the prestigious Daytona 500. It was the first domestic violence suspension in the history of NASCAR.”
Busch missed three races but was cleared of any wrongdoing following an investigation by Delaware prosecutors. However, because Delaware has some of the most lenient intimidation laws in the nation, it allowed Driscoll to obtain a protective order against Busch, which was dismissed a year later.
Driscoll accused Busch of domestic violence after unlawfully entering his motor coach in Dover, Del. following their break-up in 2014. She used an access code she secured during their relationship and brought her son with her from Baltimore in the middle of the night. No criminal case was ever brought against Busch because prosecutors said there was no evidence to support her claim. In fact, through her entire life court records from Texas and Maryland show Driscoll has repeatedly made claims of abuse against the men in her life, including family members.
In the Busch incident, Driscoll sought a financial settlement from Busch to drop her claims. It was a tactic she used in a divorce case against her first husband, as well, according to court records obtained by Kickin’ the Tires.
Stolarz told jurors that after Driscoll made her complaint against Busch, the NASCAR community revolted and went after her and donations dried up. He said Driscoll’s complaint against Busch is why an AFF former employee went to federal authorities making what he called false allegations against his client. Stolarz also pointed out that the employee was a first-cousin to Driscoll’s ex-husband, with whom she is involved in a bitter custody battle with over their son. Prosecutors allege Driscoll spent, at least, $150,000 in charity funds on an attorney to represent her in that case.
Stolarz also told the jury that the CPA used by the AFF, who questioned Driscoll’s spending of the charity’s money, once lived with her ex-husband. He said the IRS investigated the AFF in 2011 and was given an all clear. However, court filings show the government is alleging wrongdoing on criminal acts they claim occurred after the 2011 IRS review.
While Stolarz paints a heroic portrait of Driscoll as the high school-educated savior of the AFF, the government’s contention is that she is a master manipulator and con artist, who used lies and manipulation to personally benefit from donations given to the AFF.
“She stole more than $500,000 and evaded paying her fair share to the IRS,” said Virginia Cheatham, lead prosecutor for the U.S. Attorney’s Office for the District of Columbia. “She was the sole decision-maker, nothing happened at the AFF without her approval. She bamboozled, cajoled and bullied people to get her way. She hid things from the (AFF) board of directors and made false claims that 95-percent of the money (donated) to the AFF went directly to help military members and their families.”
Cheatham pointed out to jurors that she intends to prove that even after Driscoll was told the donation percentage was not true, she threatened to fire employees for not putting that information out to the public and on the AFF’s website. Cheatham said donors relied on the promise that 95-percent of their donations would benefit wounded soldiers and their families, and one Gold Star family even used the information to have people donate to the AFF when they lost their son overseas.
“Ninety-five percent was false and misleading and the defendant (Driscoll) knew it,” Cheatham told the jury. “When she was questioned by the board of directors, she repeatedly said the auditor came up with the figure … you will hear from witnesses that the defendant told to label expenses to maintain the façade of 95-percent. She wasn’t willing to reduce overhead even as the staff tried to reduce costs.”
Cheatham also said the government will prove that Driscoll used $3,000 to purchase an Espresso machine for her home and notated the expense as being used for “brain injury” help. She pointed out that Driscoll owned the Capitol Hill residence that housed the AFF, which paid rent directly to her for space in the basement, while the for-profit, privately owned company, Frontline Defense Systems (FDS), utilized other parts of the building.
“Defendant Driscoll signed the (rental) contract as both the tenant and landlord,” Cheatham said. “In 2012, she got rid of the accountant and wrote checks (from the charity account) to herself. She wrote $150,000 in checks to her personal attorney in a family court matter. She spent $122,000 on her FDS credit card bill.”
In a rare occurrence, both the defense and the prosecution witness lists have been filed under seal; however, it is expected that, at least, two former administrators of the AFF under Driscoll’s direction, were told to pay her personal bills and expenses, according to statements Cheatham made to the jury. One of those former employees went to the board of directors and the other hired as attorney and filed a whistleblower complaint against Driscoll with the IRS.
“This is not a case where the defendant borrowed money … the defendant was hiding the money,” Cheatham said. “She mislabeled checks for her personal benefit, evaded paying her fair share of taxes, gave herself money not through payroll accounts with no withholding, paid directly to her, there was no tax on the income she used for her personal attorney or her FDS credit card bills. This was a substantial tax loss for the IRS. She lied to the IRS on 990 forms (tax records that charities must file with the IRS denoting where and how they collect and spend their money, including donations, salaries and benefits for employees).”
Cheatham told jurors the AFF wasn’t a bad organization and did a lot of good for military members and their families but it had the potential to do even more. She explained it was Driscoll, who was bad.
Driscoll resigned from the AFF in 2015 and the charity was forced to close because of its financial problems. She is currently suing the charity for money she claims she is owed but the case is delayed pending the outcome of the federal criminal case against her. The AFF responded to her lawsuit in a Washington DC Superior Court filing calling her a “thief.”
“For all the good the AFF did, it’s foundation was built on sand,” Cheatham said. “It was organized to helps veterans and it was hijacked by the defendant.”
FOR PREVIOUS COVERAGE INCLUDING THE POCKET COMMANDO VIDEO:
Tax document shows AFF’s ex-leader accused of pilfering funds for personal use
More credibility issues for Patricia Driscoll in abuse claims against NASCAR driver Kurt Busch
Court delays ruling in Busch-Driscoll fracas, witness speaks out
Patricia Driscoll Pleads ‘Not Guilty’ on All Counts of Federal Indictment
FBI Documents Show Patricia Driscoll Used Charity $$$ in Legal Fight Against Kurt Busch
Patricia Driscoll awaiting her day in federal court for fraud
About darn time. If she gets off on this I will blame our justice system.
Reading the warrants says the feds are not playing. Thanks for taking time out to stay on top of this story. Appreciate it.
The Pocket Commando pitch video was so bad! Ha. I couldn’t even sit through it all. And I hope she faces the consequences for her actions. Veterans charities seem particularly susceptible to fraud. Just give the organization a distinguished-sounding name, throw in a country singer or two, and bam, executives are living the high life. Thanks for continuing coverage of this story.