COLUMBUS -- Dr. Jon C. Pensyl, a former resident of Worthington, Ohio, was sentenced today to 30 months in prison on three counts of tax evasion. In addition, Pensyl was ordered to serve three years of supervised release after he is released from prison, and pay $300,000 in restitution to the Internal Revenue Service, $3,713.63 for costs of prosecution, and a $300 special assessment. Finally, Dr. Pensyl was fined in an amount up to $60,000 dependent upon his tax liability.

Assistant Attorney General Eileen J. O'Connor of the Department of Justice Tax Division, Gregory G. Lockhart, United States Attorney for the Southern District of Ohio, and Cromwell Handy, Special Agent in Charge, Internal Revenue Service Criminal Investigation, Cincinnati, announced the sentence handed down by United States District Judge Edmund A. Sargus, Jr.

On May 9, 2003, a United States District Court jury found Dr. Pensyl guilty of three counts of tax evasion for the years 1995, 1996, and 1997. Evidence introduced at trial showed from 1995 through 1997, Dr. Pensyl evaded taxation on more than $750,000 in income derived from his dental practice, rental properties and other investments by concealing his assets and income through the use of trusts and by failing to file tax returns.

"Honest taxpayers are defrauded whenever someone commits tax evasion," said Assistant Attorney General Eileen J. O'Connor. "The Justice Department and the IRS are working together to identify tax cheaters and hold them accountable."

According to the evidence put forth at trial, Pensyl owned a one half interest in High Street Properties which owned three rental properties on N. High Street in Worthington, which collected rental receipts from the tenants of those properties. He also inherited stock in Huntington Bank, Inc. in 1992 which he sold in 1997. According to the evidence, in 1996,

Pensyl created two trust entities, Heritage Trust, Ltd., and Bennington Trust, Ltd., to which he later transferred his Arizona residences, his dental practice, his bank accounts, some of his Huntington Bank Inc. shares of stock, and other personal assets. In 1997, he also sold his dental practice to another dentist. According to the trial evidence, Pensyl attempted to evade his income taxes by concealing his ownership of assets and receipts of income through the use of the trusts and High Street Properties and failing to file income tax returns.

Special Agents with the Internal Revenue Service, Criminal Investigation Division conducted the investigation. Tax Division Trial Attorneys Richard Rolwing and Shawn Noud handled the prosecution.

Anyone who has information about suspected tax fraud should report it to the Internal Revenue Service tip line at 1-800-829-0433.