Defendant in stimulus fraud case pleads guilty to weapons charges


As if defrauding the federal stimulus program of $2 million wasn’t enough trouble, Charles Malouff earned 30 months in prison pleading guilty to federal weapons charges.

Malouff, of Jonestown, made a plea agreement in exchange for the sentence, which now awaits approval by a federal district judge, the Austin American-Statesman says today. Malouff had been sentenced to three years probation in 2007 for the unlawful transfer of a firearm.

Malouff isn’t quite done yet with court. He and Mary Jo Woodall, of Cedar Park, are awaiting trial dates on a bit of stimulus fraud Texas Watchdog told you about in October.

Woodall is charged with using her position as the grant administrator for the Energy Conservation Office of the state Comptroller to approve a largely phony wind power proposal made by her conspirator, Malouff.

Malouff had secured agreements with the city of Jonestown to manufacture and install wind turbines based on technology that didn’t exist. At the time of their arrests almost $1 million had been deposited in accounts of companies set up by Malouff.

During the fraud investigation authorities with search warrants found three dozen guns in Malouff’s home and in two of his gun safes in Woodall’s garage.

They also found 10 “destructive devices,” eight of them grenades, registered to the city of Bertram Police and the Bosque County Sheriff’s departments. Malouff had worked for both departments before his 2007 weapons conviction.

Contact Mark Lisheron at 512-299-2318 or or on Twitter at @marktxwatchdog.

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Photo of money and guns via Immigrations and Customs Enforcement.