FOR IMMEDIATE RELEASE
October 24, 2001
SAN ANTONIO WOMAN SENTENCED TO
FEDERAL PRISON FOR CONSPIRACY
TO COMMIT BANKRUPTCY FRAUD AND EVADE PAYING PAYROLL TAXES
(SAN ANTONIO, TEXAS) This morning, United States District Judge Orlando L. Garcia sentenced 53-year-old SHANNON LEE PALMER to 57 months in Federal prison after her admission to defrauding the IRS by not paying employment taxes and fraudulently discharging that debt in the Bankruptcy Courts. Judge Garcia found that Palmer evaded paying $1,158,811 in payroll taxes.
On August 18, 2001, Palmer and 43-year-old KIMBERLY ANN BUOY of San Antonio, who served as the nominee owner of Palmer’s agency, pleaded guilty to the Federal charge. According to the Factual Basis filed in this case, from the late 1970s through the present, Shannon Lee Palmer has controlled and operated one employment agency. The employment agency is currently named Employment Solutions. From January 1, 1995, through March 31, 1997, it was known as Instant Workforce, Inc. Up until December 31, 1994, the agency was known as Task Masters, Inc., Task Masters Employment, Inc., also doing business as Task Masters Employment Service, Inc., and Lone Star Personnel, Inc. As the Internal Revenue Service would pursue collection efforts, Palmer would put the respective corporation into bankruptcy, then continue business under a different name. In doing so, Palmer conspired with others to defraud the United States for the purpose of impeding, impairing, obstructing, and defeating the lawful Government functions of the Internal Revenue Service of the Treasury Department in the ascertainment and collection of the revenue, to wit: payroll taxes; and also to deceive the bankruptcy courts, all in violation of Title 18, United States Code, Section 371.
On June 27, 2001, Buoy was sentenced to five years probation after pleading guilty to the conspiracy charge.
This case was investigated by the IRS Criminal Investigation and the Federal Bureau of Investigation together with investigators from the Department of Health and Human Services / Office of Inspector General. Assistant United States Attorney Bill Harris prosecuted this case on behalf of the Government.
Please contact the U.S. District Court Clerks Office at 210-472-6550 if you wish to obtain copies of filed documents in this case.