Lester Smith, 83, the former president and event director of the Portland Marathon has been sentenced to three years federal probation and ordered to pay $411,279 in restitution to the IRS after pleading guilty to attempting to evade and defeat income taxes, according to U.S. Attorney’s Office for the District of Oregon.
The sentencing comes after a federal grand jury in Portland gave a seven-count indictment that charged Smith, who now lives in Texas, with wire fraud and attempting to evade and defeat income taxes. As part of Smith’s plea agreement, according to KGW8, the other charges were dismissed.
According to reports, including KGW8, Smith stole more than $1 million from the nonprofit group that plans and operates the race. This was uncovered and settled back in 2018, but the latest sentencing is related to Smith evading taxes on the money he stole.
For more than three decades, Smith was the president and event director of Portland Marathon Inc. (PMI), a nonprofit organization that planned and operated the race. Smith, according to court documents and reported by the Department of Justice, managed the day-to-day operations and finances. He had the sole authority to approve expenses paid from the group’s business bank account.
In this role, Smith was responsible for unauthorized transfers of money from PMI’s bank account to his personal account, paid personal credit cards with PMI funds, and wrote unauthorized checks from PMI to himself. The report says he used PMI money to buy a $60,000 car, pay for home remodeling projects, shopping, home decor, furniture, and other luxury goods and services.
The report also states that Smith and another individual paid more than $302,000 to Next Events Productions, LLC, to consult with PMI about running events. It turns out Smith owned the for-profit Next Events, and once PMI paid the company, large amounts were then transferred to Smith’s personal account.
According to KGW8, which first broke the news of the investigation into Smith and his wife, Paula, in June 2017, the 2018 settlement ordered Smith to dissolve Next Events, pay $865,000 to the Portland Marathon, including $50,000 to reimburse the DOJ, and was prohibited from working at any charitable organizations and foot races, and was barred from being a lawyer in Oregon.
Smith’s three-year probation includes eight months of home confinement.
Heather is the former food and nutrition editor for Runner’s World, the author of The Runner’s World Vegetarian Cookbook, and a nine-time marathoner with a best of 3:23. She’s also proud of her 19:40 5K and 5:33 mile. Heather is an RRCA certified run coach.
