Castle Rock man pleads guilty to income tax evasion and agrees to pay $80,000 in restitution to the IRS
DENVER – William M. Rogers, Jr., age 70, of Castle Rock, Colorado, pled guilty to one count of income tax evasion, the U.S. Attorney’s Office, IRS – Criminal Investigation, and Treasury Inspector General for Tax Administration announced. Rogers entered his guilty plea before U.S. District Court Judge Marcia S. Krieger. He was indicted on April 11, 2012, and pled guilty on October 31, 2012. Rogers is scheduled to be sentenced by Judge Krieger on February 11, 2013.
According to the stipulated facts contained in the plea agreement, William M. Rogers, is a former United States Air Force pilot who has worked for many years as a professional pilot in the civilian sector for various companies in Colorado. During the years 2005 through 2007, Rogers caused companies for whom he worked to make payments for his pilot work to Sea Scan International, Inc. ("Sea Scan"), a State of Washington corporation he controlled. He deposited checks payable to Sea Scan into a bank account in the name of North Pacific Odyssey, Inc. ("North Pacific"), another State of Washington corporation he controlled, and cashed thousands of dollars of checks drawn on that account. He engaged in these affirmative acts to evade the income taxes due and owing on his individual income, which has been calculated as follows: 2005 taxable income of $66,789 with a tax liability of $24,591; 2006 taxable income of $72,691 with a tax liability of $27,465; and 2007 taxable income of $73,237 with a tax liability of $27,895. The defendant’s total tax liability is $79,951.
In the years 2005 through 2007, Rogers knew that he received income sufficient to require him to file individual income tax returns and pay taxes to the IRS. Despite this knowledge, he failed to file federal individual income tax returns for the years 2005, 2006, and 2007, as required by law, and engaged in the acts described above to evade and defeat the assessment of the taxes he owed.
The IRS examined Roger’s tax returns for prior years, and assessed additional taxes against him. From approximately February 7, 2005, until approximately September 9, 2010, Rogers engaged in numerous acts to obstruct the civil IRS examination, including but not limited to the following: submitting to the IRS financial instruments purporting to satisfy debts he owed to the United States; opening accounts at financial institutions in the names of North Pacific and two trusts, Jasper Wells Limited ("Jasper") and Indigo Creek Resources ("Indigo"); using fictitious Employer Identification Numbers ("EINs") to open the Jasper and Indigo accounts; transferring funds and assets to North Pacific, Jasper, and Indigo; causing companies for whom he worked to make payment to Jasper and to Sea Scan for his work as a pilot; and submitting to the companies a fictitious EIN for Jasper.
Rogers faces not more than 5 years in federal prison, and up to a $250,000 fine, for one count of income tax evasion.
This case was investigated by Internal Revenue Service – Criminal Investigation (IRS CI), and Treasury Inspector General for Tax Administration (TIGTA). The case is being prosecuted by Special Assistant U.S. Attorney John Scully.