The Justice Department and the Internal Revenue Service (IRS) announced today that Jimmie Duane Ross of Lehi, Utah, and formerly of Sevierville, Tenn., was convicted today of five counts of tax evasion following a jury trial in the U.S. District Court for the Eastern District of Tennessee.
According to the indictment and evidence produced at trial, Ross won a monetary award of approximately $840,000 in 1999 after arbitration of an employment dispute with a former employer. Ross thereafter failed to pay the full amount of his income tax due and owing for 1999 and evaded the tax by filing a false mortgage on his residence, filing a false lien on his vehicle, dealing extensively in cash and directing funds to an offshore account. In addition, from 2004 through 2007, Ross earned commission income for referring clients to a purported Nevis-based investment company and evaded his taxes by using nominees and other means.
Following the jury verdict, U.S. District Judge R. Leon Jordan ordered that Ross be detained and scheduled the sentencing for Jan. 14, 2014. On each of the five counts of conviction, Ross faces a maximum sentence of five years in prison and a maximum fine of $250,000.
The case was investigated by Special Agents of IRS – Criminal Investigation. Trial Attorneys Kevin Lombardi and Kimberly Shartar of the Justice Department’s Tax Division prosecuted the case.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.justice.gov/tax.