FOR IMMEDIATE RELEASE
June 3, 2004
THOMAS W. QUINTIN PLEADS GUILTY TO FUEL TAX EVASION AND MAIL FRAUD
DENVER – John W. Suthers, United States Attorney for the District of Colorado, and Anne Marie Minogue, Special Agent in Charge of the IRS-Criminal Investigation, Denver Field Office, announced that THOMAS W. QUINTIN, age 57, pled guilty today to 15 counts of tax evasion and 98 counts of mail fraud in connection with defrauding the federal government as well as the states of Colorado, Wyoming and Nebraska by not paying excise fuel tax. The guilty plea was tendered to U.S. District Court Judge Wiley Y. Daniel. QUINTIN is scheduled to be sentenced by Judge Daniel on October 29, 2004.
According to the plea agreement, from approximately 1989 through 1993 QUINTIN operated a motor fuel distribution system including wholesale supply and retail sales outlets. The wholesale fuel supply business was operated utilizing two corporations, Max Oil, Inc. and Pit Stops of America, Inc. The retail sales operation consisted of more than 20 truck stops on major Interstate highways and convenience store retail fuel outlets in Colorado, Wyoming and Nebraska. These corporations, which operated the retail sales outlets, included Pit Stops of America, Pit Stops of Denver, Inc., Rodeo Pit Stops of Wyoming, Inc., Big Springs Oil, Inc., and HRM Enterprises, Inc. Through these corporations, QUINTIN engaged in a scheme to evade federal diesel fuel excise taxes, and to evade state fuel taxes utilizing the United States mail in Colorado, Wyoming and Nebraska.
The wholesale companies were able to obtain federal and state licenses to purchase fuel from suppliers free from state and federal taxes. After obtaining the fuel from the suppliers of his companies, the defendant would then deliver the fuel to his retail outlets, which in turn sold it to the public. The purchase price paid by the motoring public included state and federal taxes. The delivery and sale of gasoline and diesel fuel to the retail outlets were taxable events which were required to be accurately reported to the states of Colorado, Wyoming and Nebraska as well as to the federal government. QUINTIN under reported and underpaid the amount of taxes due to the states and federal government.
The federal government estimates that the amount of fuel tax QUINTIN accepted from paying customers but did not pay the federal government is approximately $7,510,566. The government also estimates the loss to the states of Colorado, Nebraska and Wyoming to be between $10,000,000 and $20,000,000.
On March 31, 1993 the government obtained search warrants for 13 locations. At that time the State of Colorado seized all of QUINTIN’s Colorado gas stations. A federal grand jury indicted QUINTIN, and his wife SANDRA J. WESTPHAL on March 7, 1996. The two were in fugitive status in the Cayman Islands and later in Canada before being arrested by the Toronto Police Department in 1998. QUINTIN was extradited from Canada to face criminal charges in the United States. WESTPHAL remains in Canada as the government attempts to extradite her.
The case was investigated by the Internal Revenue Service and the U.S. Department of Transportation Inspector General, in cooperation with the Colorado and Nebraska Departments of Revenue and the Wyoming Department of Transportation.
“White collar crime in the Motor Fuels industry is an area of concern for the IRS. The prosecution of individuals who intentionally conceal income and evade motor fuel excise taxes is a vital element in maintaining public confidence in our tax system,” said Anne Marie Minogue, IRS Criminal Investigations Special Agent in Charge.
The case was prosecuted by Assistant United States Attorney Robert Brown.
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