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April 30, 2012

Department of Justice

United States Attorney William C. Killian Eastern District of Tennessee

Jefferson County Marina Owner Pleads Guilty to Filing False Quarterly Returns

KNOXVILLE, Tenn - Stanley H. Veltkamp, 69, of White Pine, Tenn, pleaded guilty today before the Honorable Thomas A. Varlan, U.S. District Judge, to an information charging him with one count of filing a false Form 941, Employer’s Quarterly Federal Tax Return. Sentencing was set for August 22, 2012 at 10:00a.m. Veltkamp faces a term of up to three years in prison and up to $250,000 in fines.

As set out in the plea agreement filed with the court, during tax years 2004 through 2008, Veltkamp, co-owner of Swann’s Marina in Jefferson County, Tenn, was in the business of renting boat slips, boats, and cabins, as well as operating a marina store and campground. Veltkamp employed workers to help operate this business. Veltkamp admitted that these workers were paid a portion of their wages by check and a portion of their wages in cash. The purpose of paying workers in cash was to avoid the payment by Swann’s Marina of their Social Security and Medicare taxes due to the United States.

Employers file Form 941, Employer’s Quarterly Federal Tax Return with the Internal Revenue Service (IRS) to report wages paid during the quarter to their employees. With this return they submit a payment consisting of the amount withheld from employees’ paychecks, along with the employer’s matching contribution. Veltkamp admitted that on July 13, 2007, he filed such a return that substantially understated the amount of Social Security and Medicare taxes due and owing.

The Internal Revenue Service-Criminal Investigation Division led the investigation. Assistant U.S. Attorney Charles E. Atchley, Jr. represented United States.

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