News and Press Releases

Alabama Pharmacist and Wife Indicted on Tax Fraud Charges

FOR IMMEDIATE RELEASE
December 7, 2010

Montgomery, Alabama - United States Attorney Leura G. Canary, the Department of Justice, and the Internal Revenue Service (IRS) announced today that a federal grand jury indicted Thomas K. Frye and Kathy M. Frye, husband and wife, and residents of Andalusia, Alabama. The Fryes are charged with conspiring to defraud the United States, tax evasion, and filing a false claim for tax refund. The grand jury also charged Thomas Frye with passing fictitious financial instruments.

According to the indictment, beginning in 1999 the Fryes conspired to defraud the United States by submitting IRS forms to their employers that falsely claimed they were exempt from federal income tax. The Fryes also filed false federal income tax returns that understated their income. In late 2008, the Fryes filed a false refund claim with the IRS in the amount of $317,990. When the IRS attempted to collect the back taxes owed by the Fryes, Thomas Frye submitted false financial instruments to the IRS in purported payment of his and his wife’s tax liability. In one such instrument, Mr. Frye represented to the IRS that the false instrument had a value of $100 billion.

An indictment merely alleges that crimes have been committed, and the Fryes are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Thomas Frye faces a maximum prison sentence of 105 years and Kathy Frye faces a maximum prison sentence of 30 years.

The case was investigated by Special Agents of the Internal Revenue Service, Criminal Investigation. Trial Attorneys Charles M. Edgar, Jr. and Michael C. Boteler of the United States Department of Justice, Tax Division, Southern Criminal Enforcement Section are prosecuting the case.

More information about the Justice Department's Tax Division and its enforcement efforts is available at www.justice.gov/tax.

 

PRESS CONTACT: Clark Morris
Email: usaalm.press@usdoj.gov
Telephone: (334) 551-1755
Fax: (334) 223-7617

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