Fruit Heights Man Charged With Violations Of Tax Laws; Indictment Alleges He Took Several Steps To Evade Paying Taxes
SALT LAKE CITY – An initial appearance in federal court has been scheduled for April 26, 2913, for a Fruit Heights, Utah, man charged with filing a false tax return, attempted tax evasion, and evasion of payment in an indictment returned by a grand jury in Salt Lake City.
Jon T. McBride, age 51, of Fruit Heights, charged in a five-count indictment, will appear for arraignment at 10:15 a.m. before U.S. Magistrate Judge Paul M. Warner. The indictment, returned last week, alleges one count of filing a false tax return, three counts of attempted tax evasion, and one count of evasion of payment. The alleged activity occurred from 2005 through 2010.
The first count of the indictment alleges McBride filed a false tax return for the 2005 tax year by failing to disclose approximately $109,785 in gross income he received from his partnership in The Clip Company, a Nevada company that sold cell phone belt clips. The company also was registered to do business in Utah.
The three attempted tax evasion counts relate to affirmative acts of evasion the indictment alleges McBride took to avoid paying taxes to the federal government, including the use of several nominee entities and bank accounts to hide substantial income he received and the proceeds from the sale of property he controlled. As a part of the alleged scheme, McBride instructed companies to report his earned income as having been earned by several nominee entities he controlled. He then filed false tax returns for those nominee entities failing to report the income they allegedly earned. The indictment alleges he used money in the nominee bank accounts for personal purposes.
The final count of the indictment alleges that beginning in 2006 through about April 15, 2010, McBride attempted to evade the payment of approximately $839,328 in back taxes for the tax years 1999 to 2002. The indictment alleges he committed affirmative acts of evasion, including creating nominee entities to replace him as a partner in companies; opening bank accounts in nominee names; depositing money in nominee bank accounts; transferring real property to a nominee entity; filing false tax returns and forms with the IRS; and failing to file tax returns.
The potential penalty for a conviction of the charges in the indictment is up to five years in federal prison.
Indictments are not findings of guilt. Individuals charged in indictments are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Utah and investigated by special agents of IRS Criminal Investigation.