VANCOUVER MAN SENTENCED TO HOME CONFINEMENT FOR LYING TO IRS AGENT
Defendant Failed to Disclose Timeshare and Bank Account
STUART D. McMULLEN, 56, of Vancouver, Washington, was sentenced today in U.S. District Court in Tacoma, to four months of home detention, with electronic monitoring, for making a False Statement to the IRS Under Penalties of Perjury. McMULLEN pleaded guilty on March 28, 2008. At that time, both the prosecution and the defense agreed to recommend a term of four months of home detention and five years of probation. As part of the probationary term, McMULLEN must pay in full his outstanding tax liability including interest and penalties. At sentencing U.S. District Judge Benjamin Settle told him, “In order for this Country to function, it must have a federal government. You are before the Court, in my view, having not fulfilled your obligations as a citizen.”
According to the plea agreement filed in the case, between 1989 and 1998, McMULLEN and a business partner operated a construction business, Pacific NW Housing, Inc. That company filed for bankruptcy and McMULLEN started doing business as Pacific NW Construction, Siding, and Decking. For the years 1994, 1995, 1996, 1998 and 1999, McMULLEN accrued $122,634 in unpaid taxes. In 2000, an IRS Revenue Officer began working with McMULLEN to collect the taxes. On May 10, 2003, McMULLEN submitted two forms to the Revenue Officer signing them, “under penalty of perjury.” On one the forms McMULLEN did not disclose any interest in a timeshare, when in fact he and a girlfriend had purchased a timeshare from Worldmark/Trendwest for $10,000. On December 2, 2003, McMULLEN and the girlfriend entered into a separation agreement and McMULLEN was awarded the timeshare. Further, McMULLEN failed to disclose a bank account associated with one of the construction businesses. On the day before McMULLEN provided and signed the form for the IRS, the account held $1,100. On that same day, McMULLEN wrote numerous checks on the account, while failing to tell the IRS about the account.
Under relevant sentencing law, the tax loss is the amount actually concealed from the IRS. In this case estimated to be $11,000. The Internal Revenue Service may also assess any civil tax, penalties, and/or interest that may be owed by McMULLEN.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and was prosecuted by Assistant United States Attorney Arlen Storm.
For additional information please contact Emily Langlie, Public Affairs Officer for the United States Attorney’s Office, at (206) 553-4110.