Frederick Allen and Kimberlee Allen, both of Harwich, Mass., today were convicted of conspiracy, tax evasion and failure to file tax returns, after a jury trial, the Department of Justice and the Internal Revenue Service (IRS) announced. Judge Joseph Tauro of the District of Massachusetts presided.
The evidence at trial proved that Frederick and Kimberlee Allen, who own a business on Cape Cod that specialized in nutritional and vitamin consulting, have not submitted a tax return to the IRS since 1999 and conspired to conceal their assets and income from the IRS. The evidence showed that Frederick and Kimberlee Allen received unreported income, put their home in a sham trust, assigned their income to third parties, and used only cash for their transactions.
The court scheduled sentencing for Aug. 4, 2010. The defendants each face a maximum sentence of 14 years in prison and maximum fines of $900,000.
Acting Assistant Attorney General John DiCicco commended the investigative efforts of IRS Criminal Investigation and the Massachusetts Department of Revenue, as well as Tax Division Trial Attorneys Karen Kelly and Michelle Petersen, who prosecuted the case.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.