Fort Hill Man Pleads Guilty to Tax Evasion
JOHNSTOWN, Pa. - A resident of Fort Hill, Pa., pleaded guilty in federal court to charges of income tax evasion, United States Attorney David J. Hickton announced today.
Leonardus A. Otto pleaded guilty to three counts before United States District Judge Kim R. Gibson.
In connection with the guilty plea, the court was advised that for the calendar years 2005, 2006 and 2007 Otto filed income tax returns showing a total taxable income of $70,844 with total tax due of $26,467, when in actuality his total taxable income was $488,165 with total tax due of $147,259.
Judge Gibson scheduled sentencing for Jan. 3, 2013, at 9:30 a.m. The law provides for a total sentence of 15 years in prison, a fine of $750,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the criminal history, if any, of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Internal Revenue Service conducted the investigation that led to the prosecution of Otto.