FOR IMMEDIATE RELEASE:
Wednesday, November 22, 2006
WILMINGTON - United States Attorney George E. B. Holding announced that yesterday Senior United States Judge James C. Fox sentenced BEVERLY M. PARKER, 58, of 4520 Woods Road, Kitty Hawk, North Carolina to 51 months’ imprisonment, a $75,000 fine, and $400 in court costs. In June of this year, a jury in Wilmington convicted PARKER of two counts of filing false tax returns and two counts of tax evasion in violation of Title 26, United States Code, Sections 7206(1) and 7201. Following PARKER’s release from federal prison in early 2011, she will be on supervised release for three years, during which time U. S. District Judge Fox ordered her to comply with all federal tax laws and cooperate fully with the Internal Revenue Service in the assessment and collection of her tax liability. At sentencing, the Government advised the Court that civil taxes and penalties are nearly $600,000.00.
In an effort to avoid tax liability, PARKER established North Point Management, a property management business in the Outer Banks of North Carolina, as a “corporation sole” in early 2003. These types of corporations are often used by nonprofit, religious organizations, which when used as intended, enable religious leaders to separate themselves legally from the control and ownership of church assets. There was no evidence at trial of PARKER’S affiliation with any such religious organization. An Internal Revenue Service agent and qualified tax expert, testified that such corporations are routinely used improperly as tax avoidance schemes and advised that entities such as North Point Management are identified on the IRS’ “Dirty Dozen” listing of notorious tax scams. PARKER operated North Point Management from 1996 until 2003 when she sold the business. During this time, PARKER either filed false tax returns indicating no income or simply refused to file tax returns altogether.
At sentencing, Judge Fox found that PARKER had used sophisticated means to conceal her tax liability, including opening business and personal bank accounts in her children’s names and social security numbers to avoid detection by the IRS. Notably, the evidence revealed that from 1998 to 2001, PARKER used nearly $500,000.00 from the North Point Management account for her personal expenses, including mortgage and credit card payments. PARKER concealed the existence of North Point Management in which she improperly established and used the corporation to hide her assets, to include a million-dollar home in Kitty Hawk and other properties Dare County, North Carolina. PARKER also used a bank account in the corporation’s name to hide her income and proceeds from the sale of several property management contracts.
United States Attorney Holding said, “Our office will continue to work jointly with the IRS in pursuing and prosecuting those individuals who enjoy the rights, benefits, and protections shared by all United States citizens but then fail to share in our collective responsibility under the federal tax laws.”
Investigation in this case was conducted by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Kelly M. Perry prosecuted the case for the United States.
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