COVINGTON, KY. — A Boone County man who evaded paying his federal income tax liability from 1995 through 2001 was sentenced today to 24 months in prison.. He was also ordered to pay approximately $2.4 million in restitution. U.S. District Court Judge David Bunning imposed the sentence on William C. Shehan, Jr, 45, for Income Tax Evasion. Shehan was immediately remanded into the custody of the U.S. Marshal after the sentencing hearing.
From 1995 through 2001, Shehan failed to file federal income tax forms and diverted money that should have been paid in taxes into private business ventures and trusts. The trusts were found improper by the IRS in an audit in 2003 that also determined Shehan owed approximately $2.1 million, including interest and penalties in tax liability.
In May of 2003, Shehan acknowledged that he owed the taxes. In 2004, Shehan filed inaccurate information with the IRS, in an attempt to settle his tax debt. The inaccurate information concerned Shehan’s ability to pay the assessed income tax. Shehan failed to pay the acknowledged tax liability.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky and Christopher R. Pikelis, Special Agent in Charge, Internal Revenue Service - Criminal Investigations jointly announced the sentencing.
The investigation was conducted by the Special Agent Susan Palmisano of the IRS and the case was prosecuted by Assistant United States Attorney Robert McBride.
Under federal law, Shehan will have to serve at least 85 percent of his prison sentence and 3 years of supervised release.