Ice Cream Company Manager Indicted for Failing to Pay Taxes on More than $240,000 Stolen from Her Employer

September 29, 2009

Baltimore, Maryland - A federal grand jury indicted Katina Virginia Martin, age 37, of Aberdeen, Maryland, today for subscribing to two false tax returns, announced United States Attorney for the District of Maryland Rod J. Rosenstein.

“All income is subject to taxes, whether stolen or earned lawfully,” said U.S. Attorney Rod J. Rosenstein.

“Prosecuting individuals who intentionally conceal and evade income is a vital element in maintaining public confidence in our tax system,” stated C. Andre' Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge. “All Americans have a duty to pay their fair share.”

According to the two count indictment, Martin was an assistant office manager at an ice cream company, responsible for counting the money that was collected by truck drivers who delivered ice cream to the company’s wholesale customers. The customers paid by cash and checks. Martin compared the total amount of money collected by the drivers to the total amount of money due from each customer as reflected on the drivers’ delivery invoices. Martin was to investigate and reconcile any discrepancies in the daily receipts.

The indictment alleges that beginning in November 2004, Martin did not record all of the cash that had been collected. Instead, Martin allegedly deposited into her personal bank account $9,450 of the cash collected in 2004; and $226,725 of the cash collected in 2005. She is alleged to have failed to advise the tax preparer who prepared Martin and her husband’s joint income tax returns for 2004 and 2005 of the money she stole from her employer.

As a result of this scheme, Martin is alleged to have wrongfully avoided paying $61,738 in federal income taxes she owed to the IRS for the years 2004 and 2005.

Martin faces a maximum sentence of three years in prison and a $250,000 fine for each of the two counts for subscribing to a false tax return. She is expected to have her initial appearance in federal district court in Baltimore later this week.

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 and commended Assistant United States Attorney Martin J. Clarke, who is prosecuting the case.



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