LONDON, KY - A London, Ky., physician was sentenced today to 18 months in prison to be followed by six months of home incarceration for evading federal income taxes.
U.S. District Court Judge Gregory F. Van Tatenhove sentenced Werner Grentz, 64, for tax evasion and ordered him to pay the IRS approximately $900,000 for taxes that Grentz owes for the years 1999 to 2010.
According to the plea agreement, in one of those years, Grentz made $356,073 in taxable income in 2009 while working as an independent physician contractor for a hospital in Jellico, Tenn., and a medical office in London, Ky. Grentz previously admitted that he hid his income by having his earnings deposited into bank accounts of companies that he controlled.
Grentz pleaded guilty to the charge in January 2013.
Under federal law, Grentz must serve 85 percent of his prison sentence. Following his release, he will be under the supervision of the U.S. Probation Office for three years.
Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky, Kathryn M. Keneally, Assistant Attorney General for the Tax Division, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, jointly made the announcement.
The investigation preceding the indictment was conducted by the Internal Revenue Service, Criminal Investigation Division. The United States was represented in the case by Assistant U.S. Attorney John Patrick Grant and Kenneth C. Vert, Trial Attorney, U.S. Department of Justice Tax Division.