Contact: Don Davis
Assistant United States Attorney
(616) 456-2404

FOR IMMEDIATE RELEASE

Grand Rapids, Michigan – April 28, 2004 – United States Attorney Margaret M. Chiara and Special Agent in Charge, Internal Revenue Service Criminal Investigation, Mark Kroczynski, announced that a federal grand jury has charged James D. Darland, age 61, and his wife, Clodella, age 60, both of Hickory Corners, Michigan, with one count of conspiring to defraud the United States by impeding and obstructing the lawful functions of the Internal Revenue Service (IRS) and seven counts of willfully failing to file income tax returns. The indictment was returned April 20, 2004, and the Darlands were arrested the next day. The Darlands were arraigned on these charges on April 27, 2004.

According to the indictment, the Darlands owned and operated “Darland Computers,” of Hickory Corners, which sold computer hardware and software, as well as technical support. In addition, the indictment charges that, from 1993 through 2002, the Darlands deposited over 2.3 million dollars into their joint bank account, including payments from their computer customers, but that they failed to file federal and state tax returns for any of those years. The indictment also charges that the Darlands transferred their residence into a sham trust in exchange for one dollar as part of their scheme to evade the payment of taxes.
Conspiring to impede and obstruct the lawful functions of the IRS is a violation of Title 18, United States Code, Section 371. Each count of conviction carries a maximum penalty of five years imprisonment and a $250,000 fine. Willfully failing to file an income tax return is a violation of Title 26, United States Code, Section 7203. Each count of conviction carries a maximum penalty of not more than one year imprisonment, a $100,000 fine, and costs of prosecution.

The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.