Reno, Nev. – A man who operated a nightclub in Carson City and two laundromats in Reno, has pleaded guilty to tax evasion, announced Daniel G. Bogden, United States Attorney for the District of Nevada.

Bradley H. Herndon, 54, pleaded guilty on Thursday, January 27, 2011, before U.S. District Judge Edward C. Reed, Jr. to one count of tax evasion.

According to the plea agreement, between 2005 and 2007, Herndon operated three restaurants and two Duds and Suds Laundromats in Reno, as well as the Club JB nightclub in Carson City. Herndon was responsible for many of the daily business activities including maintaining, collecting, and reporting the receipts of customer sales from the two laundromats.

Herndon failed to report all the cash receipts received by the two laundromats and the door receipts received by the nightclub. Herndon then converted these funds for personal use. Herndon also prepared false documents and concealed or altered other documents to hide his actions from his company's bookkeeper, return preparer and the IRS. As a result, Herndon understated his taxable income by $106,497 for the 2005 tax year, $120,435 for the 2006 tax year, and $52,291 for the 2007 tax year. The tax loss for all three years totaled $74,883.

Herndon faces up to five years in prison and a $250,000 fine, and is scheduled to be sentenced on May 2, 2011 at 1:30 p.m.

This case is being investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Megan Rachow.

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