News and Press Releases

Wade C. Snively, charged with three counts of filing false income tax returns

FOR IMMEDIATE RELEASE
March 28, 2012

Mike Tobin, Public Affairs Specialist, (216) 622-3651

Steven M. Dettelbach, United States Attorney for the Northern District of Ohio, announced
today that a federal grand jury returned an eight-count indictment against Wade C. Snively, charging
him with three counts of filing false income tax returns, two counts of corruptly endeavoring to
obstruct and impede the due administration of the tax laws, and three counts of bankruptcy-related
offenses. According to court records, Snively is 58 years old and resides in Canton, Ohio.

Counts 1 through 3 of the indictment allege that Snively made and subscribed joint income
tax returns for the years 2005 through 2007 that were false in a number of regards. Among the false
entries on the tax returns were claims of losses that Snively and his wife, in fact, had not incurred,
including: (1) a purported $193,116 embezzlement loss in 2005; (2) a purported $342,068 involuntary
conversion loss relating to State Farm Insurance Company in 2006; and (3) a purported $125, 000
long-term capital loss relating to another person’s bankruptcy in 2007.

Count 4 charges Snively with corruptly endeavoring to obstruct and impede the tax laws with
respect to a company Snively owned and controlled, known as All American Health Care, Inc.
(“AAHC”). Snively allegedly distributed profits of AAHC to himself, his wife, and a company he controlled, known as Venture Eleven, Inc. (“recipients”), in a manner to avoid, and to conceal from
the Internal Revenue Service (“IRS”) any tax consequences to all parties. In part, Snively sought to
accomplish this goal by claiming business expense deductions on AAHC’s corporate income tax
returns, thereby eliminating any tax liability for AAHC, while reporting the same amounts on his
joint personal income tax return and the Venture Eleven income tax return as capital gains, which he,
in turn, offset with other purported losses, resulting in no additional reported taxable income to each
recipient.

Count 5 charges Snively with a separate effort to obstruct and impede the tax laws by filing a
false document with the IRS to retaliate against a person (“RP”) who successfully obtained a
$330,475.10 monetary judgment against Snively and a trust controlled by Snively. RP brought the
lawsuit to recover damages from Snively’s and the trust’s default on a note payable to RP in
connection with RP’s sale of a restaurant/inn business (Timberlanes Incorporated) to the trust.
During RP’s lawsuit against Snively and the trust, Snively falsely asserted that RP had indemnified
him against RP’s claim on the Note. After losing the lawsuit in December 2005, Snively prepared a
false IRS Form 1099-C, Cancellation of Debt, falsely claiming that RP had $330,475 in debt
forgiveness income in 2005. Snively sent a copy of the form to RP in January 2006, advising that he
would be delivering it to the IRS. After RP successfully collected on the judgment in August 2006,
Snively submitted the false Form 1099-C to the IRS in September 2006, thereby seeking to subject
RP to potential financial and other costs of an unwarranted IRS examination, investigation, tax
assessment, or other adverse action with respect to that purported income.

Finally, the three bankruptcy-related counts charge Snively with making a false statement in a
personal chapter 7 bankruptcy he filed in 2006, concealing property from his creditors and
bankruptcy Trustee in that proceeding, and executing a scheme to defraud the creditors and Trustee. Among the creditors he allegedly attempted to defraud was the Timberlanes seller, RP. A principal
aspect of the bankruptcy charges was Snively’s effort to conceal his interest in and control over
AAHC.

If convicted, the defendant’s sentence will be determined by the Court after review of factors
unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the
offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory
maximum and in most cases it will be less than the maximum.

The government’s case is being prosecuted by Assistant United States Attorney John M.
Siegel and Special Assistant United States Attorney Dean Wyman, following an investigation by the
Internal Revenue Service, Criminal Investigation, Akron, Ohio, and a federal grand jury.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair
trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

#####

Return to Top

Community Action Plan

Heroin and Opioid Epidemic
Northeast Ohio
Community Action Plan

Humand and Civil Rights

Initiatives to ensure fair treatment and equal protection under the law.

Law Enforcement Initiatives

Law enforcement efforts with federal, state and local partners.

Defending Children

Combating sexual exploitation of children.