THOMAS D. WEATHERS (54) and KATHY J. WEATHERS (52) of Vancouver, Washington,
were arrested and appeared in the United States District Court in Tacoma,
Washington on September 2 and September 3, 2004, respectively, on charges
of evasion of payment of taxes and failure to file tax returns for the
years 1998 through 2002. Thomas D. Weathers is currently being detained
until trial. Kathy J. Weathers has been released, pending trial, on
bond.
The investigation, as set forth in a search warrant application unsealed
today, has revealed that the WEATHERS receive substantial income from
the operation of approximately four hotels, one motel and other rental
properties located primarily in Portland, Oregon and Southwest Washington.
On or about October 1997, the WEATHERS filed with the Internal Revenue
Service a joint U.S. Individual Income Tax Form 1040 for the tax year
1996, and reported to the IRS that they owed $103,419 in income and
self-employment taxes. The WEATHERS have not paid $103,117 of the self-reported
tax for the year 1996 and ceased filing any subsequent tax returns,
despite yearly reported rents received from their hotel properties in
excess of $1 million in each of the years between 1997 through 2002.
Instead, the WEATHERS have engaged in a series of acts to evade payment
of tax by submitting false and fraudulent forms to the IRS, making false
statements to third parties regarding their tax status, conducting their
hotel and rental property business in the names of nominees, and purchasing
and hiding assets -- including bank accounts, numerous cars and an airplane
-- in the names of nominees.
A Seattle Grand Jury returned a six count Indictment against the WEATHERS
on September 1, 2004. The Indictment was unsealed following the appearances
of both defendants. Both Thomas D. Weathers and Kathy J. Weathers have
entered pleas of "Not Guilty." An indictment contains allegations
that have not yet been proven at trial. THOMAS and KATHY WEATHERS are
presumed innocent until the charges have been proven beyond a reasonable
doubt. Trial is set for November 8, 2004 in front of U.S. District Court
Judge Franklin Burgess.
This case was investigated by the Criminal Investigation Division of
the Internal Revenue Service. Assistant United States Attorney Katheryn
Kim Frierson is prosecuting the case. For more information please contact
Emily Langlie, Public Affairs Officer for the United States Attorney’s
Office, Western District of Washington at (206) 553-4110.
