Laurel Couple Indicted for Failing to Pay Taxes on Their Construction Company Income
Baltimore, Maryland - A federal grand jury yesterday indicted husband and wife Ronald Dean Bateson, age 52, and Cynthia Bateson, age 50, both of Laurel, Maryland, today for tax evasion and failing to file tax returns.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge C. André Martin of the Internal Revenue Service - Criminal Investigation.
“As filing season comes to an end, the indictment today sends a message that the IRS-Criminal Investigation operates year round to protect the integrity of our system of taxation,” stated C. André Martin, Internal Revenue Service-Criminal Investigation Special Agent in Charge, Washington DC Field Office. “The Special Agents of the IRS-Criminal Investigation are committed to protecting the integrity of our system of taxation by investigating individuals who violate the tax laws.”
According to the eight count indictment, Ronald and Cynthia Bateson owned a construction company called Bateson Construction Company, Inc. (Bateson Construction) located in Columbia, Maryland. Bateson Construction was a frequent subcontractor on major commercial construction projects. They also owned a construction company called Bateson Construction Carolina, LLC (Bateson Construction Carolina). The defendants maintained bank accounts at one bank for the two companies and for their joint personal accounts.
The indictment alleges that Ronald and Cynthia Bateson failed to file tax returns, failed to pay taxes for tax years 2003 through 2005, totaling $214,564 and concealed their personal income by diverting corporate funds for the purchase of personal items and assets titled in their own names, including the purchase of a farm in Oklahoma, as follows:
Tax Year Undeclared Gross Income
The defendants also allegedly concealed their income by diverting Bateson Construction income to a bank account in the name of Bateson Construction Carolina, LLC.
The defendants face a maximum sentence of five years in prison on each of three counts for tax evasion and one year in prison on each of five counts for failing to file a tax return. The Batesons are scheduled to have an initial appearance in U.S. District Court in Baltimore on April 20, 2010.
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 Assistant United States Attorney Joyce K. McDonald, who is prosecuting the case.