FOR IMMEDIATE RELEASE|
FRIDAY, APRIL 23, 2004
TDD (202) 514-1888
KETTERING BUSINESSMAN CONVICTED ON TAX CHARGES
Defendant Submitted False Withholding Statements To Prevent Payment Of Taxes
WASHINGTON D.C. - Eileen J. O’Connor, Assistant Attorney General for the Tax Division, United States Department of Justice, and Gregory G. Lockhart, United States Attorney for the Southern District of Ohio announced that, following a two-week trial, a federal jury in Dayton, Ohio today convicted Walter M. Maken of income tax evasion (26 U.S.C § 7201) and willful failure to file an income tax return (26 U.S.C § 7203). United States District Judge Herbert Walter Rice set sentencing for July 16, 2004.
The maximum penalty for the tax evasion charge is five years imprisonment followed by up to three years supervised release, a fine of $250,000, and liability for the costs of prosecution. The maximum penalty for the willful failure to file is one year of imprisonment followed by up to one year of supervised release, a fine of $100,000, and liability for the costs of prosecution.
According to the indictment and the evidence introduced at trial, Mr. Maken is a former employee of Joyce-Dayton Corporation and freelance photographer, who failed to timely file his federal income tax returns for the calendar years 1993 and 1994. In addition, he misled the IRS and concealed his income by submitting false W-4 forms to his employer, claiming he was exempt from income tax withholdings, and liquidated his retirement account without having any taxes withheld. Mr. Maken received about $70,000 in income in 1994 and had a tax due and owing of over $23,000. The government also introduced evidence that Mr. Maken had been involved with anti-tax protest organizations such as Our One Supreme Court and the Freedom Connection, both now defunct.
“Honest taxpayers deserve to know that people who commit tax crimes will be held accountable,” said Eileen J. O’Connor, Assistant Attorney General for the Tax Division.
“Tax crimes are not victimless crimes,” said U.S. Attorney Lockhart. “The honest taxpayers suffer whenever dishonest individuals fail to report fully their income and pay the taxes they owe to the U.S. Treasury.”
Assistant Attorney General O’Connor and United States Attorney Gregory G. Lockhart thanked Tax Division Trial Attorneys Richard M. Rolwing and Shawn T. Noud, who prosecuted the case. They also thanked the special agents of the Internal Revenue Service whose assistance was essential to the successful investigation and prosecution of the case.