WASHINGTON – Jimmie Duane Ross was indicted by a federal grand jury in Knoxville, Tenn., for five counts of tax evasion, the Justice Department and Internal Revenue Service (IRS) announced today. The April 5, 2011, indictment was unsealed today, May 10, 2011, following Ross’s arrest.
According to the indictment, in 1999, Ross, who at all times relevant to the indictment resided in Sevierville, Tenn, received a monetary award of $840,000 as a result of an employment dispute with a former employer. Ross failed to pay taxes on this amount and evaded the payment of such taxes by, among other things, filing a false mortgage upon his residence and a false lien upon his vehicle, dealing extensively in cash, and directing funds to an offshore bank account. Additionally, during tax years 2004 through 2007, Ross earned commissions for referring clients to Guardian Trust Company Ltd., a purported offshore investment company. However, he evaded his taxes for those years by funneling his commissions through a nominee offshore entity that he controlled.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Ross faces a sentence of up to five years in prison and a $250,000 fine for each count of conviction.
The case was investigated by IRS-Criminal Investigation and is being prosecuted by Department of Justice – Tax Division Trial Attorneys Tracy Gostyla and Kevin Lombardi.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.