Published: July 23, 2008 10:33 pm      

‘Tax preparer’ accused of embezzlement

SOMERSET — A Somerset man is in jail after police said he embezzled thousands from a Somerset-area couple by claiming to be doing their taxes and other administrative work for them.

State police have charged 58-year-old Allen Craig Otto with conning Ricky and Andrea Friedline out of $14,820 during the course of about 18 months, starting in March 2006.

The couple, who own Rick Friedline Home Building & Remodeling along Bakersville-Edie Road, paid Otto to prepare their taxes for 2005 and 2006, but they received delinquent tax notices from the IRS.

Otto, of the 500 block of Stepping Stones Road, told them he would take care of it, according to an affidavit of probable cause. But police said Otto never filed tax returns or paid taxes for the Friedlines.

In late 2007, the Friedlines contacted the IRS, which said they were two years behind on taxes. The victims then sent their payments and penalties.

Otto also agreed to incorporate their business for thousands of dollars in fees, but he never did, the affidavit says.

Police said the couple also loaned him thousands of dollars, which he has not repaid.

The Friedlines did not immediately return a call for comment Wednesday.

Otto was arraigned Wednesday before District Judge Arthur Cook in Somerset. He faces felony theft and receiving stolen property charges, and his preliminary hearing is set for Tuesday. He was remanded to Somerset County Jail in lieu of $5,000 bail.