Crews Inn co-owner David Moore, shown here last July, hasn’t returned numerous phone calls from Dallas Voice since the bar closed in early May. (Photo: Ben Briscoe)
In today’s Voice I reported that Ron Adams of Irving-based Metro Games Inc. told me Andy Krumm is working to open a bar at the site of the old Crews Inn at 3215 Fitzhugh Ave. The owners of Crews Inn, David Moore and Terry Seabolt, haven’t returned numerous messages since the bar closed in early May. I called Adams because he was listed as the “owner” on some sort of city electrical inspection document that was posted on the door of Crews Inn the other day. I also contacted John Reed, who was listed on the same document as the city inspector assigned to the case. Reed told me the document is known as a “red tag,” which means someone had tried to get power turned on to the building without a certificate of occupancy. When I contacted Adams, he initially said he was unsure why his name appeared on the document. Adams went on to say that Krumm is trying to open a bar at the location, and that if Krumm does so, Adams’ company would provide the vending. Adams said he would contact Krumm and have him call me, which Krumm never did. And while I mistakenly misspelled Krumm’s name in the story (Crumb), it is undoubtedly familiar to many of our readers. That’s because Krumm, former operator of gay bars After Dark and BJâ€™s on Cedar Springs Road, was sentenced to 46 months in federal prison in 2003 for his role in a $2.8 million insurance fraud scam. According to the Federal Bureau of Prisons, Krumm was released in August of 2006. After the jump, read a story about Krumm’s sentencing by former Voice staffer David Webb.
Oak Lawn nightclub operator gets 46 months in federal prison
By David WebbÂ Staff Writer
PUBLISHED JULY 18, 2003
Oak Lawn nightclub operator Andrew Krumm must spend 46 months in prison and pay a $75,000 fine for his role in a $2.8 million insurance fraud scam.
Krumm, 60, and his former business associate, Charles Francis Howard, 56, formerly operated After Dark and BJâ€™s on Cedar Springs Road. A Tarrant County jury in federal Judge John H. McBrydeâ€™s court convicted Krumm, in April, and Howard pleaded guilty in March.
Krumm was convicted on three counts of conducting monetary transactions with criminally derived funds, and Howard pleaded guilty to one count of the same charge.
The jury spent only 45 minutes in deliberations to reach the verdict against Krumm. The nightclub operator had faced up to 10 years in prison and a $250,000 fine.
Both men are now in the custody of the U.S. Marshals Service.
Howard was sentenced last month to 80 months in prison and ordered to pay restitution of the $2.8 million he embezzled. He testified against Krumm as part of a plea agreement.
The United States Attorney charged that Howard and Krumm operated an elaborate seven-year scheme that defrauded Allstate Insurance Co. until 2002.
Howard obtained an insurance license by submitting a false application to the Texas Department of Insurance. He changed his middle initial and used a fictitious birth date and Social Security number to cover up his felony criminal record.
After obtaining the insurance license Howard began working for Allstate Insurance Co. in Irving. He submitted false computerized loss reports and false claim check information to process claim check payments.
Howard opened false bank accounts in the name of legitimate businesses he had used to repair insurance customers homes to launder the money. Howardâ€™s personal account was used to disburse funds.
Prosecutors said that Howard and Krumm spent the money for their personal use.
During the time of the scheme the pair opened After Dark and BJâ€™s, which continue to operate under the management of Krummâ€™s son.
Howard and Krumm spent large sums of money outfitting their two Oak Lawn businesses, according to business associates. Krumm held the liquor licenses.
A former employee of After Dark said that Howard paid the clubâ€™s bills when receipts failed to bring in enough money.
Howard had been in state custody on parole violation charges since January in connection with a 1977 homicide conviction in a jury trial at the time of his guilty plea. He served 10 years in prison on a 75-year sentence for the 1976 murder of an 18-year-old friend in San Antonio before his parole in 1987.
Howard, who formerly operated the Fraternity House on Wycliff Avenue was a high school counselor when he served an arsenic-laced cocktail to Richard C. Forstello on New Yearâ€™s Eve in 1976.
Howard was also convicted of theft in Dallas County in 1975, according to the District Attorneyâ€™s records unit. He received two yearâ€™s probation, which was revoked in 1977.
He was charged with accepting unlawful benefits, a felony, in February 2000, but it was later reduced to a misdemeanor.
Howardâ€™s federal sentence will run concurrently with the remainder of his state sentence. The Texas parole board will decide how much longer he must spend in prison on the state sentence, according to a Texas Department of Corrections spokesman.