Portland, Ore. - Kenneth William Wells, 51, of Happy Valley, Oregon, was arraigned on Thursday, May 28, 2009, before United States Magistrate Judge Dennis J. Hubel on federal income tax evasion charges. A federal grand jury in Portland returned an indictment charging that Wells took several affirmative steps from 2003 through 2006 to evade paying income tax due for the 2000 and 2001 tax years, including transferring ownership of his home to a “corporation sole,” causing his employer to redirect his salary to various business entities, filing a fraudulent bankruptcy petition in an attempt to defeat tax levies, filing fraudulent returns with the IRS, and failing to provide complete and accurate information to his tax return preparer. Wells entered a not guilty plea, and the court set a trial date of August 4, 2009.
“Prosecuting those who violate our tax laws is necessary to defend the integrity of our tax system, and to protect the vast majority of honest, tax-paying Americans from those who would otherwise get a free ride," said Karin J. Immergut, United States Attorney for the District of Oregon.
The maximum penalty for federal income tax evasion is five years in prison, a $100,000 fine, and the costs of prosecution.
A criminal indictment is only an allegation and not evidence of guilt. The defendant is presumed innocent unless and until proven guilty. The charges stem from a continuing investigation by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Stacie Fatka Beckerman.
