Thursday, August 12, 2010
Department of Justice
Acting United States Attorney Gregg L. Sullivan Eastern District of Tennessee
EAST TENNESSEE ATTORNEY SENTENCED TO FEDERAL PRISON AND $270,069 RESTITUTION FOR TAX FRAUD
KNOXVILLE, Tenn--Thomas E. Cowan, Jr., 65, of Elizabethton, Tennessee, was sentenced today to twelve months and one day in prison in the United States District Court for the Eastern District of Tennessee at Knoxville, by the Honorable Karl S. Forester, United States District Judge. In addition, Cowan was ordered to pay restitution in the amount of $270,069 to the Internal Revenue Service (IRS). The sentence was the result of a guilty plea by Cowan on December 4, 2009, to a federal grand jury indictment charging him with tax evasion.
During the sentencing, the United States provided evidence of a pattern of evasion that had spanned more than a decade. An IRS investigator testified that Cowan had used his attorney trust account, along with transfers of earnings to a nominee account and family members, as a means for concealing his income. In addition, the United States demonstrated that Cowan had only in the past two months filed his income tax returns for the past nine tax years.
The case was prosecuted by Assistant U.S. Attorney Frank M. Dale, Jr.