Ice Cream Company Manager Pleads Guilty to Failing to Pay Taxes on More than $236,000 Stolen from Her Employer

December 9, 2009

Baltimore, Maryland - Katina Virginia Martin, age 37, of Aberdeen, Maryland, pleaded guilty today to 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 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 Martin’s plea agreement, she 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.

Martin admits that beginning in November 2004, she did not record all of the cash that had been collected. Instead, Martin deposited into her personal bank account $9,450 of the cash collected in 2004; and $226,725 of the cash collected in 2005. She 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 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. U.S. District Judge William D. Quarles, Jr. has scheduled sentencing for March 2, 2010 at 2:00 p.m.

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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