United States Attorney Richard B. Roper
Northern District of Texas

AMARILLO RESIDENT PLEADS GUILTY TO INCOME TAX EVASION

Defendant Worked at Amarillo Natural Gas

AMARILLO, Tx. — James R. Lyon appeared in federal court in Amarillo yesterday and pled guilty before U.S. District Judge Mary Lou Robinson to a federal Information charging two counts of Income Tax Evasion, announced U.S. Attorney Richard B. Roper, of the Northern District of Texas. Lyon faces a maximum statutory sentence of 10 years in prison, a $500,000 fine and restitution. Sentencing is set for October 22, 2007.

According to the documents filed in this case, James R. Lyon, a resident of Amarillo, did willfully attempt to evade and defeat a large part of the income tax due and owed by him to the U.S. for 2003 and 2004 by filing false and fraudulent U.S. Individual Income Tax Returns, Form 1040. On those forms, he stated his taxable income for 2003 was $37,058, and that the amount of tax due was $4,180.00. Lyon admitted that he well knew his taxable income for 2003 was $225,836 and that he owed an income tax of $54,750.

Lyon also admitted in court documents that he stated his taxable income for 2004 was $12,902 and that he owed $645 in tax. He further admitted that he well knew that his taxable income for 2004 was $253,432 and that he owed an income tax of $61,571.

The court documents further reveal that beginning in 2001, Lyon was employed by Amarillo Natural Gas (ANG). Lyon admitted that during tax years 2002 through 2004, he diverted checks from ANG and deposited them into his personal account and his partnership, Spanky’s Outdoor Services, by stealing ANG checks and endorsing them for personal expenditures and to support his partnership.

As part of his plea agreement, Lyon agrees to pay restitution in this case for all relevant conduct. He agrees he failed to report a total of $603,213.70 of individual income, resulting in a total tax loss due and owing of $144,701.

U.S. Attorney Roper praised the investigative efforts of Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann C. Roberts of the Lubbock, Texas, U.S. Attorney’s Office.

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