Petersburg Woman Sentenced to Five Years in Prison for Tax Evasion
RICHMOND, Va. – Kim Jenkins Brandveen, 50, of Petersburg, Va., was sentenced today to 60 months in prison, followed by three years of supervised release, on her conviction for tax evasion, in violation of Title 26, United States Code, Section 7201. The Court will determine within sixty days the amount of restitution she will have to pay to the Internal Revenue Service.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia; and Jeannine A. Hammett, Acting Special Agent-in-Charge for the Internal Revenue Service—Criminal Investigation Division’s Washington, D.C. field office, made the announcement after sentencing by United States District Judge Henry E. Hudson. Brandveen plead guilty on August 9, 2011.
According to court documents, Brandveen admitted being the owner of Healthcare Solutions Medical Supply, LLC, a business that sold durable medical equipment and provided home health services. Brandveen directed the withholding of federal employment taxes from the paychecks of that business’s employees, but regularly and systematily failed to pay those taxes over to the Internal Revenue Service (IRS), instead using those funds for other business ventures and personal expenses. When the IRS undertook collection efforts, Brandveen shut down that business and abandoned its bank accounts. She then operated as Healthcare Solutions Service Corporation, a virtually identical business performing largely the same functions from the same location with the same employees. Healthcare Solutions Service Corporation also failed to pay over employees’ withheld employment taxes to the IRS, again using them for Brandveen’s other business ventures and personal expenses. During the investigation, Brandveen misled the IRS by falsely asserting that a relative was actually the party responsible for paying those taxes.
This case was investigated by the Internal Revenue Service—Criminal Investigation Division. Assistant United States Attorney Michael C. Moore is prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.