U.S. Department of Justice
Peter F. Neronha
United States Attorney
District of Rhode Island
March 18, 2010
BUSINESSMAN SENTENCED FOR FILING FALSE INCOME TAX RETURNS
PROVIDENCE, R.I. – David Christensen, 58, of South Kingstown, R.I., owner of a glass bead manufacturing company, was sentenced Thursday to five years probation - the first five months on home confinement with electronic monitoring - for filing false income tax returns, it was announced by United States Attorney Peter F. Neronha.
At Thursday’s sentencing hearing, Chief U.S. District Court Judge Mary M. Lisi, who imposed sentence, told the defendant that while she normally sentences tax violators to terms of imprisonment, in this case she decided that home confinement was appropriate in light of the fact that the defendant cooperated with the government very early on in admitting his guilt. Christensen was also ordered to file amended tax returns.
United States Attorney Peter Neronha noted, “Cases like this are a strong reminder, particularly at the height of tax filing season, that taxpayers who intentionally withhold information and tax payment from the I.R.S. will be held accountable for their actions.”
At a change of plea hearing in December 2009, at which time Christensen pled guilty, Assistant U.S. Attorney Andrew J. Reich said the government could prove that, for the tax years 2003 and 2004, Christensen under-reported the income from his business by more than $244,000 and, as a result, under-paid his income tax by a total of $70,172.
Christensen concealed his income by having a substantial portion of checks payable to the business cashed or deposited into an account in his wife’s name. A much smaller portion of the business receipts was deposited into the business account.
The Internal Revenue Service, Criminal Investigation investigated the case.
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