LONDON, KY - A London, KY., physician, who worked in eastern Kentucky and Tennessee, admitted he evaded hundreds of thousands of dollars in federal income taxes.
Werner Grentz, 64, pleaded guilty today to tax evasion in front of U.S. District Judge Gregory F. Van Tatenhove. As part of his plea, Grentz agreed to pay the IRS approximately $900,000.
Grentz admitted he made $356,073 in taxable income in 2009 working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, Ky. In order to hide his income, Grentz had his earnings deposited into bank accounts of companies that he controlled, and he did not file a tax return or pay federal income taxes.
Grentz admitted that he failed to pay $900,068 in taxes since 1999. He was indicted in April of last year.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement today.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant.
Grentz is scheduled to appear for sentencing on May 16 at 2:30 p.m., in Federal court in London. He faces a maximum prison sentence of five years. However, the court must consider the United States Sentencing Guidelines and the federal statute before imposing a sentence.