United States Attorney James T. Jacks
Northern District of Texas

WEDNESDAY, DECEMBER 9, 2009
http://www.usdoj.gov/usao/txn/

DEAF SMITH COUNTY, TEXAS, WOMAN SENTENCED TO
36 MONTHS IN FEDERAL PRISON IN TAX CASE

AMARILLO, Texas — Judy Darlene Welch was sentenced this morning by U.S. District Mary Lou Robinson to 36 months in federal prison and ordered to pay $178,962 in restitution to the IRS, announced U.S. Attorney James T. Jacks of the Northern District of Texas. Welch pleaded guilty in September 2009 to making or subscribing to a false tax return. Judge Robinson ordered that she surrender to the Bureau of Prisons by December 28, 2009.

According to the factual resume filed in the case, Judy Welch was an employee of Great Plains Cattle Feeders, Ltd., which was partly owned by Clay Birdwell. Welch and Birdwell were also partners in BMW Transport. Welch oversaw the bookkeeping and banking activities for these businesses, as well as others businesses that Birdwell owned.

During the 2003, 2004 and 2005 tax years, Welch diverted approximately $622,875 from the BMW Transport business accounts and some of the other Birdwell business accounts. The total tax harm attributable to her omission of this income on her tax returns is $178,962.

Filed documents also reveal that Welch signed her tax returns, under penalty of perjury, after they were prepared for her by her sister, Jackie Monk. Monk only used information that Welch provided to her to prepare the returns. That information consisted partly of the W-2 forms that Welch received from her employer, Great Plains Cattle Feeders, Ltd., which included partners capital, and the W-2 forms that her husband received from his employer, the Texas Animal Health Commission, as well as some miscellaneous and other income amounts she and her husband received from their personal farming and ranching activities and related expenses. Welch never provided Monk any type of listing or summary of the amounts she diverted from BMW Transport and the other Birdwell businesses, so the diverted income Welch received in those three above-mentioned tax years was omitted by Welch from her tax returns.

Dallas IRS-CI Special Agent in Charge, Michael P. Lahey said, “All Americans have a duty to pay their fair share. Embezzlement can happen in any business and it is IRS Criminal Investigation's duty to prosecute individuals who intentionally conceal income and evade taxes.”

The case was investigated by IRS-CI and prosecuted by Assistant U.S. Christy Drake, of the Amarillo, Texas, U.S. Attorney’s Office.

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