News and Press Releases

FOR IMMEDIATE RELEASE:

WEDNESDAY - February 25, 2009

RALEIGH MAN IS CHARGED WITH TAX EVASION
AND FALSE STATEMENTS ON TAX RETURNS

RALEIGH - United States Attorney George E.B. Holding announced today that a Federal Grand Jury returned a six-count Indictment on February 19, 2009, charging JOHN PATRICK ARMSTRONG, 45, of Raleigh, North Carolina, with Tax Evasion, in violation of Title 26, United States Code, Section 7201, and Making a False Statements, in violation of Title 26, United States Code, Section 7205(1), relating to individual tax returns for the years 2002, 2003, and 2004. The Indictment alleges ARMSTRONG prepared, or caused to be prepared, tax returns for which there was substantial unreported income. The additional tax liability was alleged to be approximately $221,844 in 2002; $55,912 in 2003; and $25,824 in 2004. The total unreported income for the combined years 2002, 2003, and 2004 exceeded approximately $1,501,000. In addition to the tax evasion charges, ARMSTRONG is cited with failing to disclose his interest in or authority over financial accounts in a foreign country for the years 2002, 2003, and 2004.

The maximum penalty for tax evasion is up to five years imprisonment, per charge, followed by three years of supervised release and a fine of up to $100,000. For each charge of making a false statement, the maximum penalty is up to three years imprisonment followed by one year of supervised release and a fine of up to $100,000.

Mr. Holding commented: “One of the basic principles of our tax system relies on good, fair and honest citizens to provide complete and truthful information toward the collection of taxes. When someone fails to participate in our system honestly, we must pursue them on criminal charges to preserve the integrity of the system for law-abiding citizens.”

Special Agent in Charge Jeannine A. Hammett, IRS-CI states, "Within CI's mission, we are working to deter tax evasion through education and publicity. This indictment sends a clear message that we will pursue those who choose to illicitly dodge their tax responsibilities.”

An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.

Investigation of the case was conducted by agents of the Internal Revenue Service. Assistant United States Attorney J. Gaston B. Williams is in charge of the prosecution.

 

News releases are available on the U. S. Attorney’s web page at www.usdoj.gov/usao/nce within 48 hours of release.

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