Mount Airy Man Sentenced For Filing False Tax Returns

GREENSBORO, N.C. – A Mount Airy man was sentenced to 30 months of imprisonment for filing false tax returns, announced United States Attorney Ripley Rand.

JEFFREY LEE JOHNSON, 45, of Mount Airy, North Carolina, had pleaded guilty to two counts of filing false tax returns. Johnson was sentenced on September 13, 2013, by United States District Judge Catherine C. Eagles to 30 months in prison followed by one year of supervised release. Judge Eagles also ordered JOHNSON to pay restitution of $2,495,721 to the Internal Revenue Service.

From January 2005 through February 2010, JOHNSON owned and operated Mayberry Auto Parts and Recycling, Inc. (“MAPR”). MAPR was in the business of purchasing scrap metal from individuals and reselling it to larger scrap metal companies. JOHNSON filed tax returns for 2006 and 2007 with gross receipts of $799,228 and $820,000, respectively. JOHNSON knew at that time he filed those returns that he had received hundreds of thousands of dollars in excess of those amounts in both years. The investigation of the Internal Revenue Service confirmed that MAPR earned gross receipts of $4 million in 2006 and $5 million in 2007.

Jeannine A. Hammett, Special Agent in Charge of the Internal Revenue Service – Criminal Investigative Division, stated that “the successful prosecution of individuals who intentionally conceal income and evade taxes helps instill confidence in the American tax system. Mr. Johnson admitted he deliberately underreported his income, thereby placing an additional burden on the honest taxpayer.” United States Attorney Rand added, “Our office will continue to work effectively in partnership with the Internal Revenue Service to root out fraud and hold accountable those who flout our tax laws.”

JThe case was investigated by the Internal Revenue Service -- Criminal Investigation Division, and prosecuted by Assistant United States Attorney Stephen Inman.