FOR IMMEDIATE RELEASE|
MONDAY, MAY 12, 2003
TDD (202) 514-1888
WORTHINGTON, OHIO, DENTIST CONVICTED OF TAX EVASION
WASHINGTON, D.C. - Assistant Attorney General Eileen J. O'Connor of the Tax Division announced that a federal jury last Friday convicted Jon C. Pensyl, a dentist from Worthington, Ohio, on three counts of tax evasion. The trial began on April 28, 2003 before United States District Judge Edmund A. Sargus Jr.
Evidence introduced at trial showed that from 1995 to 1997, Dr. Pensyl evaded taxation on more than $750,000 in income derived from his dental practice, rental properties and other investments by concealing his assets and income through the use of trusts and by failing to file tax returns.
"Honest taxpayers are defrauded whenever someone commits tax evasion," said Assistant Attorney General Eileen J. O'Connor. "The Justice Department and the IRS are working together to identify tax cheaters and hold them accountable."
According to the indictment, Pensyl owned a one-half interest in High Street Properties which owned three rental properties on North High Street in Worthington and collected rental receipts from the tenants of those properties. He also inherited stock in Huntington Bank, Inc., in 1992, which he sold in 1997. According to the indictment, Pensyl created two trust entities, Heritage Trust, Ltd., and Bennington Trust, Ltd., in 1996, into which he later transferred his Arizona residence, his dental practice, his bank accounts, some of his Huntington Bank Inc. shares of stock, and other personal assets. In 1997, he also sold his dental practice to another dentist.
According to the trial evidence, Pensyl attempted to evade his income taxes by concealing his ownership of assets and receipts of income through the use of the trusts and by failing to file income tax returns.
The crime of tax evasion, in violation of Title 26 United States Code, Section 7201, carries a maximum penalty of five years in prison, a $250,000 fine and three years of supervised release. The defendant faces a maximum statutory term of imprisonment of 15 years because he was convicted of three counts.
Special Agents with the IRS Criminal Investigation conducted the investigation. Tax Division trial attorneys Richard Rolwing and Shawn Noud handled the prosecution.
Anyone who has information about suspected tax fraud should report it to the Internal Revenue Service tip line at 1-800-829-0433.
# # #