Eugene, Ore. – Kenneth L. Anderson and Dorothy S. Anderson of Central Point, Oregon, each pled guilty today before U.S. Magistrate Judge Thomas M. Coffin to two counts of willfully failing to file federal income tax returns for the calendar years 2004 and 2005. As part of their plea agreement, the Andersons agreed to file tax returns and pay all taxes due and owing, including over $400,000 in combined restitution to the IRS. Sentencing is set for September 8, 2009. The Andersons each face up to two years in prison, a $50,000 fine, and two years of supervised release, in addition to the restitution they agreed to pay.
According to statements made in open court, during the years 2002 through 2005, the Andersons, both personally and through their corporation, AGK Services, Inc., earned more than $1.3 million in commissions by selling Mannatech Inc. health supplements. Also, from 2002-2005, the Andersons did not file corporate income tax returns on behalf of AGK Services, Inc.
According to www.irs.gov, around 800 people were convicted of willfully failing to file tax returns during the years 2006 through 2008.
This investigation was conducted by the Internal Revenue Service - Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Scott E. Bradford.
