United States Attorney
Northern District of Texas

1100 Commerce St., 3rd Fl.
Dallas, Texas 75242-1699

Telephone (214) 659-8600
Fax (214) 767-0978

FEDERAL JURY IN AMARILLO CONVICTS PHYSICIAN ON TAX CHARGE

United States Attorney Richard B. Roper announced that following two and one-half hours of deliberation yesterday, a federal jury in Amarillo, Texas, convicted Stephen P. Miller of one count of tax evasion. The trial began Tuesday in federal court in Amarillo before the Honorable Mary Lou Robinson, United States District Judge. Miller, age 68, is a physician who practiced medicine at Baptist Hospital in Amarillo in 1999 and 2000. Evidence at trial also showed that he practiced medicine in Wellington and Brownsville, Texas. Dr. Miller faces a maximum statutory sentence of five years imprisonment and a $250,000.00 fine. A sentencing date has not yet been set.

The government presented evidenced at trial that Dr. Miller entered into a scheme with Charles Matich beginning in 1996 to use limited liability companies and sham trusts to conceal income and move it offshore. Most of the money was moved through Charles Matich to the Channel Islands which is a British Territory. Charles Matich is a cooperating defendant awaiting sentencing in his own tax case in San Diego, California. In 1998, Miller had outstanding IRS assessments against him for the 1992-1993 tax years, and was being audited for the 1995-1996 tax year. Fearing that the IRS would seize his IRA valued at approximately $1,000,000.00, he cashed in the IRA in three transactions occurring in 1999. The money was sent to Charles Matich to hold in accounts offshore for Miller.

At trial, Matich testified that he invested Miller's money along with some of his own in Nassau. In March 2000, Miller sent an Offer in Compromise to the IRS offering to settle his outstanding IRS debt of approximately $140,000.00. for $7500.00. Dr. Miller stated the reason for the Offer in Compromise was that, due to his age and unavailability of assets, he would never be able to satisfy his tax liabilities. The offer was returned by the IRS to Dr. Miller in November 2000 due to lack of documentation

U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation (IRS-CI). Assistant United States Attorney Vicki Lamberson of the Amarillo, Texas, United States Attorney’s Office prosecuted the case.

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