MARTINSBURG, W.Va. -- An ex-railroad worker from Maryland who ran a West Virginia scrap yard while collecting disability checks will spend 18 months in prison for tax evasion.Fifty-year-old Kenneth Harold Hogan of Oldtown, Md., was sentenced in U.S. District Court in Martinsburg earlier this week on a misdemeanor count of making false statements and a felony count of tax evasion.
Hogan retired with a back injury in 1995 and collected disability, claiming he had no income.Prosecutors say he fraudulently collected federal benefits from 2006 through 2008. They say the government overpaid him more than $128,000 after he started Scrap Brothers Inc. in Paw Paw.
Judge Gina Groh also ordered Hogan to repay the U.S. Railroad Retirement board and pay the Internal Revenue Service nearly $91,000. Hogan will self-report to prison.