Gold Miner Sentenced for Tax Evasion
Reno, Nev. - United States Attorney Daniel G. Bogden and Assistant Attorney General for the United States Department of Justice Tax Division Eileen J. O'Connor announced that DENNIS P. FLYNN, a resident of Spring Creek, Nevada, was sentenced today in Reno before U.S. District Court Judge David Hagen to the federal crime of tax evasion. FLYNN was ordered to serve four months in prison followed by four months of home detention, and ordered to pay restitution to the IRS in the amount of $41,571. FLYNN will also be placed on supervised release for a period of three years following the period of imprisonment, and will have to perform 40 hours of community service.
In December of last year, FLYNN pleaded guilty to Tax Evasion as charged in a Criminal Information. According to the Plea Agreement, FLYNN was enlisted by an employee of the Marigold Mine in Valmy, Nevada, to sell gold concentrates the employee had stolen from the mine. In exchange for a portion of the proceeds of the stolen gold, FLYNN agreed to take the gold to Money Mart, a pawn shop in Reno, and exchange the gold for money. Money Mart then sold the gold to the Garfield Refinery in Philadelphia. FLYNN enlisted the aid of an employee of Money Mart to conceal the proceeds from the sale of the gold by paying FLYNN in cash or in checks in amounts under $10,000. Between January 1991 and August 1993, the Philadelphia refinery transferred approximately $1,850,000 to Money Mart, and between January 1991 and December 31, 1992, Money Mart made payments to FLYNN of approximately $1,051,798. During the calendar year 1992, DENNIS P. FLYNN, received $99,950.89 in taxable income for which he owed federal income tax of $27,368. FLYNN failed to file an income tax return on or before April 15, 1993, as required, and attempted to conceal his true and correct income from the IRS, in violation of Title 26, United States Code, Section 7201.
Special Agents with the Internal Revenue Service conducted the investigation. Department of Justice Tax Division Trial Attorney Eric Witiw handled the prosecution.
Anyone who has information about suspected tax fraud should report it to the Internal Revenue Service tip line at 1-800-829-0433. The IRS also maintains a website which contains a warning notice to the public concerning abusive trust programs. The web site address is www.treas.gov/irs/ci.