John L. Brownlee
United States Attorney

Patricia A. Grisetti
Media Contact

Thomas B. Mason Building
105 Franklin Rd., S.W.
Roanoke, Virginia 24011
(540) 857-2250
FAX (540) 857-2180

March 17, 2004

POUND RESIDENT CHARGED WITH TAX EVASION

United States Attorney John L. Brownlee announced today that a federal grand jury in Abingdon returned an Indictment against KAYLENE ADDINGTON for four counts of income tax evasion for the years 1997 through 2000, in violation of Title 26, United States Code, Section 7201.

According to the Indictment, ADDINGTON, a resident of Pound, Virginia, evaded her individual income taxes by failing to file her 1997 through 2000 federal individual income tax returns and by other means including: preparing and causing the preparation of false payroll records and entries in her employer's books and records; destroying records; her extensive use of cash; and by handling her affairs so as to avoid making records usual in transactions of the kind. If convicted, ADDINGTON faces a maximum penalty of 5 years' imprisonment and a $250,000 fine on each tax evasion charge, respectively.

According to previous news reports, ADDINGTON pleaded guilty in Wise County circuit court to five counts of embezzling nearly $500,000 from her employer, Cumberland Resources, from 1995 to 2000. ADDINGTON was previously employed as Cumberland Resources' office manager for approximately 10 years. On July 2, 2002, ADDINGTON was sentenced by Wise County Circuit Judge Robert Stump to 18 years in prison, but the Court suspended the sentence with the exception of three weeks she served in jail upon her initial arrest as well as eight months' home confinement with electronic monitoring. ADDINGTON was also ordered to pay her former employer approximately $439,000 in restitution.

Mr. Brownlee commended the investigative efforts of the Bristol office of the Internal Revenue Service, Criminal Investigation Division in the investigation of the case. Greg Tortella, Trial Attorney, United States Department of Justice, and Assistant United States Attorney Rick Mountcastle will prosecute the case. For further information, please contact Greg Tortella at 202-514-5145 or 276-628-4161.

A Grand Jury indictment is only a charge and not evidence of guilt. The defendant is entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.

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