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Department of Justice United States Attorney David L. Huber Contact: Sandy Focken |
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April 11, 2008
THE TAXING SEASON IS UPON US
– Tax Prosecution Facts
– Western KY IRS Cases 2006 - 2008
LOUISVILLE, KY - David L. Huber, United States Attorney for the Western District of Kentucky, and Christopher R. Pikelis, Special Agent In Charge, Internal Revenue Service, Criminal Investigation Division, Nashville Field Office jointly announces that taxpayers should comply with all federal tax laws with the approach of the April 15 tax filing deadline.
IRS Special Agent In Charge Pikelis stated, "Taxpayers are reminded that they have an obligation to comply with the Nation's tax laws. This includes the accurate and timely filing of their tax returns. As witnessed by the cases prosecuted over the past several years in the Western District of Kentucky, violations of our tax laws is a serious offense and the IRS will aggressively investigate individuals who disregard their tax obligations.
U.S. Attorney Huber reported that his office has prosecuted 22 defendants over the past three years for felony tax violations including tax fraud, tax evasion, conspiracy to defraud the IRS and assisting in the preparation of false tax returns. Three of the defendants are either awaiting trial or the cases are pending in U.S. District Court.
IRS Special Agent In Charge Pikelis stated, "Tax fraud is not a victimless crime. When taxpayers avoid their share of the tax burden, they shift this burden to all other taxpayers and IRS Criminal Investigation will pursue those who abuse the tax system to avoid paying their fair share."
Huber noted that four of the defendants were professional tax preparers who defrauded the U.S. Treasury by preparing false tax returns for their clients. One of the tax preparers even stole $34,000 of fraudulent returns from her clients. According to Huber, these four were rewarded with a collective 7 years and 6 months in federal prison.
Four of the nineteen cases were jury convictions, and the others plead guilty. Huber praised the IRS agents and the Assistant U.S. Attorneys for not losing a case. The 19 guilty defendants evaded, defrauded, or owed the U.S. Treasury an approximate collective $9 million. One of the convicted defendants had hidden from the IRS a 72 foot yacht in Florida and numerous luxury automobiles including a Mercedes, Hummer, Jaguar, Cadillac, and Lincoln Town Car. The three remaining defendants who have not been adjudicated are alleged to owe a total of $550,000.
Overall, sixteen, of the nineteen convicted, defendants were sentenced to a total of 30 years and 1 month in federal prison. Three defendants are awaiting sentencing. There is no parole in the federal judicial system.
Collectively, the 19 defendants were ordered to pay restitution, fines, and penalties in the amount of $6,156,284.78.
In commenting on the diversity of the convicted defendants, U.S. Attorney Huber also noted that they include the owner of a highway paving company, a drug dealer, an oil and gas developer, professional gambler, business executives, entrepreneur, investment advisor, the former chairman of the Board of the Military Channel, and a former VFW Post Commander who was also convicted of torching the Post building.
Regarding the three remaining defendants, the indictment of a person by a Grand Jury is an accusation only and that person is presumed innocent until and unless proven guilty.
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