Slot Machine Mechanic Sentenced to Eleven Months in Prison for Tax Evasion
Reno, Nev. - A man who serviced slot machines in the Reno/Sparks area has been sentenced to 11 months in federal prison for evading over $40,000 in federal income taxes over a three-year period, announced Daniel G. Bogden, United States Attorney for the District of Nevada.
PAUL JAMES ARNY, of Reno, was sentenced on Tuesday, November 8, 2005, by U.S. District Judge Edward C. Reed. He was also ordered to pay $42,144 in restitution to the IRS and perform 100 hours of community work service, and must serve three years of supervised release following his release from prison. He pleaded guilty in April to one count of Evasion of Income Tax for the calendar year 2000; however, the specific conduct to which he pleaded guilty covers the evasion of income taxes for the years 1999 through 2001.
According to the plea memorandum, ARNY admitted that during the calendar years 1999 through 2001, he worked as a slot route mechanic for United Coin Machine Company and was responsible for maintaining, repairing and filling their slot machines at various sites throughout the Reno/Sparks area. ARNY was also responsible for filling the tills of the on-site change persons employed by United Coin Machine Company. The plea memorandum states that during that same period he earned additional income from three sources which he failed to report on his federal individual income tax return. That income was derived from money he earned working part-time as a slot route mechanic for another company; money he earned from remodeling homes; and money he embezzled from United Coin Machine Company through various methods.
According to the plea memorandum, the total income ARNY failed to report for all three years is $159,218, and the total tax loss to the government is $42,144.
ARNY must report to the Federal Bureau of Prisons no later than January 5, 2006, to begin serving his sentence of imprisonment.
The case is being investigated by IRS Criminal Investigation Division, and prosecuted by Assistant United States Attorney Brian Sullivan.