John Threadgill Sentenced To Serve 51 Months In Prison For Tax Evasion
KNOXVILLE, Tenn. – John Oliver Threadgill, 70, of Knoxville, Tennessee, was sentenced on June 24, 2013, by the Honorable Thomas W. Phillips, U.S. District Court Judge, to serve 51 months in federal prison. In addition, he was ordered to pay restitution to the Internal Revenue Service in the amount of $3,569,200.90.
Threadgill was indicted on June 21, 2011, and charged with one count of income tax evasion. He was convicted on November 11, 2012, following a five-day jury trial.
According to the indictment, Threadgill failed to pay more than $1.4 million in tax to the Internal Revenue Service (IRS) for numerous tax years from 1985 through 2004. The indictment further alleged that Threadgill, an attorney, used his law firm bank account and payroll account to pay for personal expenditures, opened bank accounts in the names of nominee trusts, and titled his personal residences in the names of nominee trusts.
During the trial, the United States presented evidence of Threadgill’s earnings, along with proof that he spent more than $909,000 in personal expenditures, including $69,000 for a wedding, $245,000 for family educational expenses, $60,000 for country club expenses, $52,000 for personal travel, and $213,000 for personal real estate, with funds that could have been used to pay his taxes. The United States also offered proof that Threadgill had evaded the payment of his taxes through disguising the personal nature of his assets and by placing real estate in the names of nominee trusts.
“Every person should know that, regardless of your stature, you will be prosecuted for violating the criminal income tax laws. This sentence should serve as a deterrent to other potential tax defrauders,” said U. S. Attorney Bill Killian.
This investigation was conducted by the Internal Revenue Service Criminal Investigation. Assistant United States Attorney Frank M. Dale, Jr. represented the United States.