Dr. Dayo Obebe of Muscogee County, Ga., pleaded guilty today in federal court in Columbus, Ga., to one count of tax evasion, announced Assistant Attorney General Kathryn Keneally of the Justice Department's Tax Division and U.S. Attorney Michael J. Moore for the Middle District of Georgia.
According to court documents, Obebe is a dentist licensed in Georgia and Alabama, where he operated the Moon Road Cosmetic & Family Dentistry in Columbus, Ga., and the Brent Dental Dentistry in Brent, Ala. In 2004, Obebe began intentionally concealing money he earned from patients who paid with credit cards from his accountants and the IRS by placing credit card payments into a separate bank account from other cash and check receipts. Consequently, Obebe intentionally underreported his total income from the dental practice on his 2004, 2005 and 2006 federal income tax returns by more than $500,000 and falsely claimed a tax refund.
In 2007, the IRS audited Obebe’s tax return. In 2008 Obebe lied during an audit when he stated that he accurately reported his income on his tax return, when he knew that he had earned substantially more income over the three-year period than he had reported to the IRS. In total, Obebe evaded paying over $185,000 in tax to the IRS on his 2004, 2005 and 2006 federal income tax returns.
Obebe faces a statutory maximum sentence of five years in prison, three years of supervised release and a $250,000 fine. In addition, according to the plea agreement, he has agreed to pay restitution to the IRS in the amount of $189,661. Sentencing has not been scheduled.
The case was investigated by special agents of the IRS - Criminal Investigation, and Trial Attorneys Charles Edgar and Justin Gelfand for the Tax Division are prosecuting the case.
More information about the Tax Division and its enforcement efforts can be found at www.justice.gov/tax.