|U.S. Department of Justice
United States Attorney
BOTHELL MAN SENTENCED TO 36 MONTHS FOR FILING FRAUDULENT
PERSONAL AND CORPORATE TAX RETURNS
Katrina C. Pflaumer, United States Attorney for the Western District of Washington, announced today that on March 30, 2001, United States District Judge Thomas S. Zilly sentenced NORMAN HUGH SMITH, age 57, of Bothell, Washington, to 36 months in prison for filing false U.S. Individual Income Tax Returns and false U.S. Corporation Income Tax Returns for 1993 and 1994, in violation of Title 26, United States Code, Section 7206(1).
According to court records, SMITH owned and operated a plastics manufacturing business called Precision Laboratory Plastics, Inc., (“PLP”) in Centralia, Washington, during at least 1993 through the end of 1995. PLP manufactured plastic medical products, including vials and test tubes, and molds for specialized plastic containers. In 1993 and 1994, Mr. SMITH diverted at least $650,000 in PLP corporate income to his personal use, while failing to report this income on his corporate or personal income tax returns. Mr. SMITH also used PLP funds to pay for personal expenses, while failing to report this income on his personal income tax returns and causing PLP to claim false deductions for the expenses on its corporate income tax returns. The Court found that Mr. SMITH had failed to pay income taxes of between $325,001 and $550,000.
This case was investigated by the Criminal Investigation Division of
the Internal Revenue Service for the Western District of Washington.
The prosecution was handled by Trial Attorneys Patrick F. Stokes and Thomas
J. Krysa of the United States Department of Justice Tax Division, Western
Criminal Enforcement Section.
For further information please contact Patrick F. Stokes at (206) 553-7970, or Lawrence Lincoln, Executive Assistant United States Attorney, at (206) 553-4127.
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