Business Owner Pleads Guilty To Tax Evasion
Jackson, TN – Isaac H. Brooks, Jr. 59, of Jackson, Tennessee, pled guilty to two counts
of income tax evasion before U.S. District Judge J. Daniel Breen, announced Edward L. Stanton
III, United States Attorney for the Western District of Tennessee. Brooks was indicted on April
19, 2010, and charged with 29 counts of income tax evasion.
According to information presented during the plea hearing, Brooks operated a successful
employee leasing business entitled Temp Owned Temporary Services (TOTS) from 2002 until
2007. Brooks also acquired a commercial janitorial service in 2003 entitled Full Line
Maintenance. Brooks controlled all financial aspects for both of these companies. During this
time, Brooks was also the minister at Antioch Missionary Baptist Church, earning approximately
$1,000 each month.
Evidence from the investigation showed that no Form 941, Employer’s Quarterly Federal
Tax Return, was filed for the second quarter of 2006 for TOTS. During this quarter,
approximately 300 employees were paid wages totaling $786,481.08. The tax due and owing to
the United States for this quarter was approximately $178,019.61. In addition, several of the
other quarterly employer returns filed by Brooks were false. Brooks withheld federal income
taxes and social security and Medicare benefits from employees’ paychecks but failed to pay all
of these amounts over to the government, instead keeping the funds for himself.
Brooks also admitted that he did not file a 2006 Form 1040, Individual Income Tax
Return, even though he had income from TOTS, Full Line Maintenance, and Antioch Missionary
Baptist Church. The tax due and owing was calculated to be $197,987.00.
Evidence presented during the plea hearing revealed that during 2006, Brooks incurred
gambling losses from 16 different casinos in five different states totaling $644,069.00. Brooks
also paid off loans of $814,133.56 and made several large purchases of jewelry, furniture, and
apartment rentals. Brooks also leased and/or purchased several luxury vehicles in the name of
Antioch Missionary Baptist Church, including a Mercedes Benz, a BMW, a Cadillac Escalade
and an Infinity G35. The furniture and vehicle purchases were without church members’
knowledge or authorization.
Sentencing has been set for August 23, 2012, at 2:30 p.m. before Judge Breen. Brooks
faces a maximum penalty of 5 years and a fine of $250,000 on each count.
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys
Lawrence J. Laurenzi and Victor Ivy represent the government.