Day School Owners Sentenced for Federal Tax Offenses

WILMINGTON, Del. - David C. Weiss, Acting United States Attorney for the District of Delaware and Internal Revenue Service (IRS) Special Agent in Charge Eric C. Hylton, announced today that Troy and Monnie Dorsey of New Castle, Delaware, had been sentenced by Judge Sue L. Robinson to a period of incarceration of 41 months and 12 months and one day, respectively.

In March, a federal jury convicted the Dorseys of the following offenses: one count of conspiracy to impede the IRS in the execution of its duties, in violation of Title 18, United States Code, Section 371; and three counts of filing false tax returns for the tax years of 2004 - 2006, in violation of Title 26, United States Code, Section 7206(1). In addition, Troy Dorsey was convicted in eight additional counts of structuring cash deposits to avoid currency transaction reporting requirements, in violation of Title 31, United States Code, Sections 5324(a)(3) and (d)(2); Title 31, Code of Federal Regulations, Section 103.11; and Title 18, United States Code, Section 2.

During the tax years 2004 - 2006, the Dorseys did not report any business income from the operation of their school, the Day School for Children, in New Castle, Delaware. In fact, the Dorseys earned gross business receipts in the amount of $129,270.00 in 2004, $312,901.00 in 2005, and $260,104.00 in 2006. The indictment also alleges that between September 2005 and May 2006, Troy Dorsey deposited cash income from the operation of the Day School for Children in multiple increments under $10,000.00 to avoid currency transaction reporting requirements.

"Today's sentencing of Mr. and Mrs. Dorsey again emphasizes the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who use fraudulent methods in an attempt to corrupt our Nation's tax system," said Eric Hylton, Special Agent in Charge, IRS-Criminal Investigation, Philadelphia Field Office. "Honest taxpayers have been reassured today that no one is above the law especially when the integrity of tax administration is at stake."