WASHINGTON - Frederick Allen and Kimberlee Allen, both of Harwich, Mass., were arraigned today before Magistrate Judge Marianne B. Bowler in Boston on charges of conspiracy to defraud the United States, tax evasion and failure to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced.
The indictment alleges that the Allens conspired to defraud the United States of assessing and collecting federal income taxes from 1998 through April 2009. The indictment further alleges that the couple evaded the payment of income taxes for the 1999 tax year and that they failed to file tax returns for tax years 2003 through 2006.
According to the indictment, Frederick and Kimberlee Allen have not submitted a tax return to the IRS since tax year 1999. The indictment alleges that the Allens concealed their income and assets from the IRS in numerous ways, including putting their residence in a trust, assigning their wages to third parties and using a third party to cash checks. The indictment also alleges that they obstructed and harassed the Internal Revenue Service by mailing frivolous documents to the IRS.
An indictment is merely a formal charge by the grand jury. Each defendant is presumed innocent unless and until proven guilty in U.S. District Court. If convicted, the defendants each face a maximum potential sentence of 14 years in prison and maximum fines of $900,000.
The case is being prosecuted by Tax Division trial attorneys Karen E. Kelly and Michelle M. Petersen. The case was investigated by the IRS Criminal Investigation Division.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.