FOR IMMEDIATE RELEASE|
WEDNESDAY, APRIL 9, 2003
TDD (202) 514-1888
RENO, NEV., CHIROPRACTOR AND OFFICE MANAGER
INDICTED FOR TAX FRAUD
WASHINGTON, D.C. – Eileen J. O'Connor, Assistant Attorney General of the Justice Department's Tax Division, and Daniel G. Bogden, U.S. Attorney for the District of Nevada, announced today that a federal grand jury in Reno, Nev., returned a seven-count indictment against Daniel P. and Sheila A. Nightingale, residents of Reno. The indictment charges Daniel Nightingale, a chiropractor, and Sheila Nightingale, his wife and office manager, with conspiracy to defraud the Internal Revenue Service (18 U.S.C. § 371), tax evasion (26 U.S.C. § 7201), and the willful failure to file income tax returns (26 U.S.C. § 7203).
According to the indictment, beginning with the tax year 1991, the Nightingales have failed to file federal income tax returns or to pay federal income taxes for themselves and their chiropractic business, despite the business earning more than $730,000 in gross business income during the seven-year period from 1993 to 1999. The Nightingales allegedly used bank accounts opened in the name of "CPA Chiropractic Professional Agreement" and two individuals, as signatories on the accounts, to conceal their business income and assets from the IRS and evade the collection of their outstanding income tax liabilities. The indictment also alleges that the couple committed tax evasion regarding their 1986, 1991 and 1992 income tax liabilities, and willfully failed to file income tax returns for 1996, 1997, 1998 and 1999.
Daniel Nightingale is also charged with corruptly attempting to obstruct or impede the internal revenue laws in violation of 26 U.S.C. § 7212(a) by retaliating against IRS employees by sending them letters that demanded payment to him of as much as $2 million, and then filing copies of those letters with the Washoe County Recorder's office in Reno. The indictment states that these IRS employees' only contact with Nightingale was during the performance of their official duties, and that they never owed the defendant any money.
Daniel and Sheila Nightingale both may face maximum penalties upon conviction, including:
The criminal investigation was conducted by the IRS Criminal Investigation section. The case is being prosecuted by Tax Division trial attorneys for the Western Criminal Enforcement Section, Thomas J. Krysa and Brett A. Sagel.
These charges are only allegations. The defendants are presumed innocent unless and until proven guilty.