Couple Charged With Conspiracy, Filing False Tax Returns In Connection With Ogden Club
SALT LAKE CITY – Robert R. Watson, age 52, and Marie M. Watson, age 51, both of Pleasant View, are charged with conspiracy to defraud the United States and with making and subscribing to a false tax return in a nine-count indictment returned by a federal grand jury Wednesday afternoon.
The indictment alleges the Watsons failed to record substantial cash receipts from Teazers Sports Bar and Grill in Ogden and prepared financial records for the club knowing that the cash receipts were not included. Robert Watson was the president and general manager of the club during the time of the conduct alleged in the indictment. Marie Watson kept the books and records at Teazers.
The first count of the indictment, conspiracy, alleges that the Watsons did not report substantial cash receipts on any books or records of the company. According to the indictment, the Watsons gave financial records to their tax preparer that they knew were false and misleading. The indictment also alleges they used cash receipts from Teazers to pay personal expenses and did not report the information to their tax preparer or to the IRS.
In furtherance of the conspiracy, according to the indictment, the Watsons prepared or caused to be prepared, signed, and filed false and fraudulent corporate and joint individual tax returns with the IRS for the 2004-2008 tax years.
The indictment also charges Robert Watson with four counts of filing a false corporate tax return knowing that the returns failed to report additional gross receipts received by Teazers during each year. Robert and Marie Watson are charged together in four additional counts with filing false joint individual tax returns.
A summons will be issued to the Watsons to appear for an arraignment on the charges in the indictment. Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The potential penalty for the conspiracy count is up to five years in prison. Filing false returns carries a potential penalty of up to three years in prison. The fine for each count in the indictment is up to $250,000.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS Criminal Investigation.