United States Attorney Richard B. Roper
Northern District of Texas

AMARILLO RESIDENT PLEADS GUILTY TO TAX EVASION

Defendant Embezzled Funds from Employer, Jimmy Fincher Body Shop

AMARILLO, Tx. — Joel L. Smith appeared in federal court in Amarillo today and pled guilty before U.S. District Judge Mary Lou Robinson to one count of tax evasion, announced U.S. Attorney Richard B. Roper, of the Northern District of Texas. Smith was charged in an Information with one count of income tax evasion, in violation of 26 U.S.C. § 7201, and faces a maximum statutory sentence of five years in prison and a $250,000 fine. A sentencing date has not yet been set.

According to the factual resume filed in the case, on or about April 12, 2002, Joel L. Smith wilfully attempted to evade and defeat a large part of the income tax due and owed by him to the U.S. for calendar year 2001 by filing a false and fraudulent U.S. Individual Income Tax Return, Form 1040. Smith stated on that form that his taxable income for calendar year 2001, was $23,128 and that the tax due was $2,269, when in fact, Smith well knew that his taxable income for calendar year 2001 was $200,654.39 and that he owed the U.S. an income tax of $53,979.81.

The factual resume states that Smith was the office manager for Jimmy Fincher Body Shop during the tax years 2001 through 2004. He handled most of the financial affairs of the business and held signature authority on the business bank accounts. Smith embezzled significant amounts of funds from his employer for his personal use and failed to report the income on his personal tax returns, thereby evading his personal federal income tax. Specifically, Smith omitted income in the amounts of $175,670.39 for 2001; $86,091.75 for 2002; $83,047.15 for 2003; and $56,793.12 for 2004. The total tax loss with the omitted income is $51,710.81 for 2001; $20,421.14 for 2002; $11,835.00 for 2003; and, $5,758.00 for 2004. The total tax loss for 2001 through 2004 is $89,724.95.

As part of his plea agreement, Smith agrees to pay restitution in ths case for all relevant conduct, including the tax years of 2001, 2002, 2003 and 2004. He agrees he failed to report a total of $401.602.41 of individual income resulting in a total tax loss due and owing of $89,724.95.

U.S. Attorney Roper praised the investigative efforts of Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christy L. Drake of the Amarillo, Texas, U.S. Attorney’s Office.

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