Businessman And Local Minister Sentenced To 55 Month Prison Term In $3.6 Million Tax Evasion Case
Jackson, TN – Isaac H. Brooks, Jr. 60, of Jackson, Tennessee, was sentenced today by U.S. District Judge J. Daniel Breen to 55 months in prison, for failing to pay more than $3.6 million in federal income taxes, announced U.S. Attorney Edward L. Stanton.
On May 23, 2012, Brooks pled guilty to two counts of a 29 count indictment for 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 2008. 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.
“By stealing more than $3.6 million from the United States Government through a pattern of deliberate tax evasion, Brooks traded the respect of his parishioners and employees, and ultimately his freedom, for the allure of easy money,” said U.S. Attorney Stanton. “Today’s verdict demonstrates he made the wrong choice, and should serve as an example for those who occupy positions of trust that are tempted to act in the same manner.”
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 taxes due to the United States for this quarter were 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.
“Most taxpayers file accurate tax returns. In fairness to the majority who are honest, the IRS must and will actively pursue those who intentionally violated the tax laws by attempting to evade their true tax liabilities,” stated Christopher Henry, Special Agent in Charge of the IRS-Criminal Investigation Nashville Field Office.
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 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 rental.Brooks also leased and/or purchases several luxury vehicles in the name of Antioch Missionary Baptist Church, including a Mercedes Benz, a BMW, and a Cadillac Escalade. The furniture and vehicle purchase were without church members knowledge or authorization.
In addition to the term of imprisonment, Breen ordered Brooks to serve three years of supervised release, and ordered to pay restitution of $3,660,905 to the Internal Revenue Service (IRS). There is no parole in the federal prison system.
This investigation was conducted by IRS Criminal Investigation. Assistant U.S. Attorneys Lawrence J. Laurenzi and Victor Ivy represented the government.