The United States Attorney’s Office for the District of Oregon, and
Douglas A. Bricker, Special Agent in Charge, Portland Field Office,
Internal Revenue Service, Criminal Investigation Division, announced
that Karen Lee was sentenced today in United States District Court in
Eugene, Oregon.
Lee, age 45, who was a resident of Sisters, Oregon, pleaded guilty
on June 7, 2004, to one count of failure to file her 1998 US Income
Tax Return with the Internal Revenue Service. Lee admitted that she
received gross income during 1998 sufficient to require that she file
a federal income tax return. Lee received approximately $88,000 in gross
income.
The Bend Bulletin previously reported that Lee, a former Sisters School
Board member, and Steven M. Gage were partners in Royal Haven Equestrian
School, a group home for troubled girls. Gage was found guilty in 2001
of 22 counts of sexual abuse of girls who lived at the school and is
serving a lengthy sentence in state prison.
Lee was sentenced to five years probation with six months home detention.
Lee must pay all back taxes, penalties and interest to the Internal
Revenue Service.
For further information, please contact Assistant United States Attorney
Christopher Cardani at 541-465-6771.
