A former commander of Bowling Green’s Veteran of Foreign Wars post will serve 10 years and one month in prison for running an illegal gambling operation at the post, then burning it down to destroy records.

Donald Mudd, 65, was immediately taken into custody Monday after his sentence was announced. After the prison term, Mudd will have three years of supervised release. Restitution for the crimes was set at $531,148, with part going to the insurance company that paid damages for the fire and the rest going to the Lt. Harold R. Cornwell VFW Post.

Martha Towe, 53, who lives with Mudd at 600 Fairway St., was sentenced to six years and 10 months in prison, along with three years of supervised release. Towe is responsible for paying $259,988 of the restitution total.

The VFW Post on Richardsville Road was burned down in August 2003. Mudd and Towe are accused of running an illegal gaming operation since at least 2000 until his removal as commander in 2006.

During the sentencing hearing, Towe maintained her innocence and claimed she had no idea Mudd had used insurance money gained after the VFW fire to purchase personal items.

Towe was convicted in March of operating an illegal gambling operation, two counts of mail fraud, two counts of structuring transactions and one count of conspiracy to impair or impede the IRS. Mudd was found guilty of the same charges, as well as a charge of arson.

During the hearing Monday, many people testified about the health of Towe’s mother and brother – several friends of the family said Towe was the primary caretaker for Carl Wayne Webb, who is confined to a bed and wheelchair.

When Webb took the stand and was asked what his plan was if his sister was sent to prison, he responded, “death.”

There was also testimony that Towe’s 81-year-old mother was not in good enough health to provide proper care for Webb.

Mike Graf, District 5 VFW commander and previous Bowling Green VFW commander, said that because of Mudd and Towe’s actions, the VFW was not able to donate to the worthy causes that it should.

“I’ve been to VFWs all over, and they all have a trophy case with mementos from a grateful community,” he said. “The Bowling Green VFW has no trophy case.”

The money that should have gone to charity instead went to cars, jewelry and other items, Graf said, and asked U.S. District Judge Thomas Russell to give both Mudd and Towe the maximum sentences.

Law enforcement was also represented at the hearing, as a federal agency’s spokesman testified to the extreme danger Mudd’s arson presented.

“Mudd certainly lived up to his name,” said Craig W. Roegner, spokesman for the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. “It is reprehensible that during a time when America is at war that Mr. Mudd would purposely burn down a VFW post and conspire with his girlfriend, Ms. Towe, to pocket for themselves more than $250,000 of charitable funds that was originally meant to help our veterans and people in need in the Bowling Green area.”

Mudd could have received up to 12 years and seven months under sentencing guidelines, while Towe could have been sentenced to up to seven years and three months.

Russell said making the sentencing decision was hard because of the impact on Towe’s family.

“It’s always sad that crime has a direct impact, but also a peripheral impact,” he said.

But, he continued, there had to be a prison sentence.

“I cannot ignore the loss amount,” he said. “These crimes had a very devastating impact on a number of other people.”

Graf, for his part, was satisfied with the judge’s ruling.

“We’re happy with the sentences,” Graf said. “This is the end of a two-year ordeal.”

The key for the VFW was that Mudd began serving his sentence immediately, Graf said.

Towe, however, was not taken into custody – Russell gave her six months to make arrangements for the care of her mother and brother before she turns herself in.