Columbia Computer Consultant Indicted for Attempting to Evade Taxes and Failing to File Income Tax Returns
Allegedly Failed to File Federal Tax Returns For Five Years
While Earning at Least $675,923 in Income
Baltimore, Maryland - A grand jury has indicted Anthony Edwin Dorsey, Sr., of Columbia, Maryland, for attempting to evade paying income taxes and failing to file income tax returns, announced United States Attorney for the District of Maryland Rod J. Rosenstein. The indictment was returned on April 9, 2008 and his initial appearance and arraignment are scheduled for tomorrow, May 9, 2008 at 10:00 a. m.
According to the 10 count indictment, Dorsey has operated an information technology consulting business known as Allnet System Resources since at least 1999. As an independent contractor, Dorsey was responsible for paying federal and state income, payroll and Medicare taxes on the payments he received for his computer consulting services. From 2001 to 2005 Dorsey was allegedly paid at least $675,923. He did not file federal tax returns or pay taxes on this income.
The indictment alleges that from 1999 to the present, Dorsey attempted to evade his tax liability by: promptly converting $380,000 he was paid to cash and then using the cash for personal expenses; transferring $88,975 from his bank accounts to an offshore credit card account and then using that credit card for his personal expenses; providing an inaccurate social security number to the bank where he maintained his principal bank accounts to make it more difficult to identify his ownership of the funds and track the movement of funds from these accounts; making mortgage payments on his residence under the name of the previous owner, so that the previous owner was reflected on county property and tax records as the owner; and using false social security numbers when purchasing an interest in time share properties in Las Vegas, Nevada and Williamsburg, Virginia in December 2002 and July 2003.
Dorsey faces a maximum sentence of five years in prison and a fine of $ 250,000 on each of the five counts for attempting to evade income taxes; and one year in prison and a fine of $100,000 on each of the five counts for failing to file tax returns.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein thanked the Internal Revenue Service - Criminal Investigation for its investigative work. Mr. Rosenstein commended Assistant United States Attorney Jefferson M. Gray, who is prosecuting the case.