Las Vegas Contractor, Relatives and Employees Charged with Tax Evasion
Las Vegas, Nev. - A Las Vegas man who owns and operates several different businesses in Las Vegas, including painting, drywall and tile companies, has been indicted by the Federal Grand Jury on conspiracy and tax evasion charges, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
ROBERT DAVID KAHRE, of Las Vegas, is charged in two separate criminal indictments with 20 counts of Willful Failure to Collect or Pay Over Tax, two counts of tax evasion, and two counts of Conspiracy to Attempt to Evade or Defeat Tax. Twenty-four other individuals, including his girlfriend, DANILLE CLINE, his mother, MYRA L. BUONOMO, his sister, LORI A. KAHRE, his brother, JOHN W. KAHRE, and numerous employees of his businesses, all Las Vegas residents, are also charged in the Indictments with various counts of Conspiracy and Attempt to Evade or Defeat Tax.1 If convicted, the defendants are facing up to five years in prison and a $250,000 fine on each count charged.
According to the court records, ROBERT DAVID KAHRE operates businesses in Las Vegas known as Production Air Conditioning, Production Plumbing, Sherman Tile and Marble, and Wright Painting and Drywall. KAHRE had many employees, many of whom worked as laborers at his businesses. KAHRE also provided payroll services for other businesses in Las Vegas.
From 1998 through 2003, it is alleged that ROBERT DAVID KAHRE paid his employees, and the employees of the other businesses with whom he contracted, in the form of gold, silver, and/or cash. KAHRE allegedly maintained an office at 6270 Kimberly Avenue in Las Vegas, where cash, gold, or silver payments were made to the employees. No federal tax withholdings were made from the paychecks, and the wages were not reported to the IRS. During the course of the conspiracy, it is alleged that KAHRE paid over $114 million in unreported cash wages to employees, including approximately $19,934,416 in cash wages to his employees, and approximately $94,810,817 in cash wages to the employees of other contractors with whom he had agreed to provide payroll services.
The Indictments also charge that ROBERT DAVID KAHRE attempted to evade income tax owed by him for the years 1992 and 1993 in the amount of $1,000,453, and that he attempted to conceal his income in calendar years 1996 through 2005 by using straw buyers to purchase various pieces of real property, and by placing the properties in the names of his girlfriend, his mother, his sister, and step-father. The properties include commercial property at 6049 Boulder Highway in Las Vegas; a ranch at 62436 Mink Lane, in Summerville, Oregon; homes at 6385 and 6295 North Grand Canyon Drive in Las Vegas; a home at 5680 Ruffian Road in Las Vegas; and real property at 590 Sugar Leo Circle in St. George, Utah.
The defendants were summoned to appear before a United States Magistrate Judge on April 18, 2005, for an Initial Appearance and Arraignment.
The case is being investigated by Special Agents with IRS Criminal Investigation, and prosecuted by Assistant United States Attorney J. Gregory Damm.
The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.