OWNER OF HOME IMPROVEMENT COMPANY PLEADS GUILTY TO FRAUD
FRIDAY, NOVEMBER 22, 2013
Public Affairs Officer
COLUMBUS, OHIO– Terrance J. King, 46, of Columbus pleaded guilty to charges that he defrauded homeowners, businesses, the Columbus Metropolitan Housing Authority (CMHA), the U.S. Department of Housing and Urban Development (HUD), and the Internal Revenue Service (IRS) in connection with a home improvement repair company he operated. King pleaded guilty to one count each of money laundering, false claims, and filing a false federal income tax return. In addition, King agreed to forfeit $40,280.94.
Carter M. Stewart, United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service Criminal Investigation (IRS), and Barry McLaughlin, Special Agent in Charge, U.S. Department of Housing and Urban Development Office of Inspector General announced the guilty pleas entered today before U.S. Magistrate Judge Terence P. Kemp.
According to court documents, during 2008, 2009 and 2010 King owned and operated Home Improvement Terrance King, doing business in the Dayton, Springfield, and Columbus, Ohio areas. King or his employees solicited business at properties which needed roofing repairs. The clients’ insurance companies were contacted and claims were filed for the repairs. King accepted the insurance money as payment for services rendered.
King failed to report all of the income earned from his company on his federal income tax returns for those three years. For the 2009 income tax year, King claimed total income in the amount of $7,919, when his actual total income was $243,656.12. The total tax loss to the IRS as a result of the false income tax returns filed by King was $241,076.35.
While earning the income from Home Improvement Terrance King, on or about September 18, 2008, King submitted to the Columbus Metropolitan Housing Authority a recertification application package to continue to receive subsidized housing assistance supported by funds from the United States Department of Housing and Urban Development. In this package, King submitted specific documents representing that he earned little or no income and had no assets.
Money laundering is punishable by up to ten years in prison and a fine of up to $250,000. Filing a false claim is punishable by up to five years in prison, a fine of up to $250,000, and restitution to HUD in the amount of approximately $9,000. The willful filing of a false federal income tax return is punishable by up to three years in prison, a fine of up to $250,000, and restitution to the IRS in the amount of approximately $241,076.35. The court will schedule a date for sentencing.
"Tax violations have been erroneously referred to as victimless crimes, but it's the honest law-abiding citizen who is harmed when someone tries to manipulate our nation's tax system," said Kathy A. Enstrom, Acting Special Agent in Charge, IRS, Criminal Investigation, Cincinnati Field Office.
U.S. Attorney Stewart commended the investigation conducted by the IRS and HUD Office of Inspector General, and Assistant U.S. Attorneys Laura Fulton and Jessica Knight, who are prosecuting the case.# # #