Political consultant to serve time for tax fraud

A Democratic political consultant who organized get-out-the-vote operations on election days for local candidates was sentenced yesterday to five months in a federal lockup for filing a false tax return in 2006.

U.S. District Judge Mary McLaughlin ordered Chester Fulton III, 54, of Narberth, to surrender to the Bureau of Prisons on Jan. 7. Upon release from prison, Fulton must serve a year of supervised release, with the first five months under house arrest. He must also pay the IRS more than $107,000 in back taxes, interest and penalties.

Fulton pleaded guilty in June to filing a false tax return for 2005. As part of his plea deal, he agreed to pay back at least $10,000 of the tax liability at the time of sentencing.

But Fulton, a political consultant for 25 years, stunned prosecutors with a court filing on Friday that he wouldn't be able to comply with the $10,000 payment.

Assistant U.S. Attorney Richard Zack said yesterday that Fulton had "thumbed his nose" at taxpayers and acted in "bad faith."

But defense attorney Ellen Brotman said Fulton's failure to pay the $10,000 was not intentional but "fiscally irresponsible."

Brotman said Fulton hoped to make enough in political-consulting fees during the recent election cycle to make good on the $10,000 payment. However, he earned none.

McLaughlin said she didn't find that Fulton had acted in bad faith. "He may have had a cavalier attitude," she said.

Authorities said Fulton made more than $500,000 in consulting fees from 2001 to 2007, but reported, on average, less than $10,000 per year in net income from the business.

Zack said Fulton shirked his tax obligations so he could live lavishly.

Court papers said Fulton valued his home at $800,000 in February and at one time leased several Mercedes-Benzes and paid more than $20,000 a year to send his son to an "exclusive" private school in Center City.

Prosecutors also said Fulton and others received a contract from the city of Philadelphia in 2005 to operate a homeless shelter that catered to men recently released from prison.

Fulton, who owned 49 percent of the company, embezzled $145,000 from the business but did not report any of the income to the government and used the money to pay personal expenses, prosecutors said.

Fulton was not charged with any wrongdoing in the matter, and McLaughlin said she didn't consider that when she sentenced him.