Suite 2001
                                                        211 West Fort Street
                                                        Detroit, Michigan 48226-3277
 

For Immediate Release:
Contact:Gina Balaya (313) 226-9758
            Stephen Moore, IRS CI (313) 234-2410

April 13, 2004

    United States Attorney Jeffrey Collins and Special Agent in Charge of Internal Revenue Service Criminal Investigation, Mark Kroczynski, announced that on April 13, 2004, Jason Lynn Hollady, 49, formerly of Lake Angelus, Michigan, a physician who practices in Durand, Michigan, pleaded guilty to a superseding information charging him of willfully signing and filing a false individual 1996 income tax return. The guilty plea was entered before United States District Court Judge Paul V. Gadola.

    According to court records, during 1996 and 1997, Dr. Hollady practiced medicine under the corporate name of Durand Clinic, P.C. His accountant instructed him to deposit all payments for his medical practice into the corporate bank account, so that the accountant could accurately determine the business's taxable income. However, Dr. Hollady deliberately diverted selected cash payments and checks from his business and deposited them into his personal credit card account with MBNA America or into a personal investment accounts with Janus Funds. Some of the diverted funds were later used by Dr. Hollady for personal purchases and were not declared as income on either the corporate tax returns or his personal federal tax returns. Dr. Hollady signed these returns under penalty of perjury, knowing that they were not true and correct, thereby failing to declare over $280,000 in taxable income during the 1996 and 1997 tax years.

    Mr. Kroczynski stated, "IRS Criminal Investigation's largest enforcement program is directed at people like Dr. Hollady who willfully attempt to evade paying their correct taxes to the IRS. With April 15 upon us, everyone is obligated to pay their fair share of the tax burden. We will investigate alleged violations and seek convictions, as the one obtain against Dr. Hollady, to reinforce to the public that no one is above the law. If tax evaders think differently, then they can expect to face the prospects of forced compliance and criminal penalties through enforcement efforts."

    Willfully signing and filing a false individual income tax return is in violation of Title 26, United States Code, Section 7206. A count of conviction carries a maximum penalty of three years imprisonment and a $250,000 fine. The sentence will be imposed under the United States Sentencing Guidelines according to the nature of the offense and the criminal background, if any, of the defendants.

    Mr. Collins commended the special agents of the Internal Revenue Service Criminal Investigation for their work in this investigation. Assistant United States Attorney Robert W. Haviland is prosecuting the case.