Montana Husband and Wife Indicted for Tax Fraud

A federal grand jury sitting in Billings, Montana, returned an indictment on Feb. 17, which was unsealed today, charging a Saint Ignatius, Montana, couple with one count of conspiracy to defraud the United States and three counts of tax evasion, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney Michael W. Cotter of the District of Montana.

According to the allegations in the indictment, Margaret DeYoung aka Peggy Ann DeYoung and John Robert DeYoung failed to file federal income tax returns with the Internal Revenue Service (IRS) for the years 2009 through 2011.  During these years, Margaret DeYoung received rental income as a part-owner of two mobile home parks in California.  It is alleged that the DeYoungs conspired together to conceal assets and income from the IRS through the use of nominee entities that they created.  The DeYoungs opened bank accounts in the names of these entities using fabricated Employer Identification Numbers to hide the rental income from the IRS and to pay personal expenses.

If convicted, the DeYoungs face a statutory maximum sentence of five years in prison for the conspiracy charge and five years in prison for each count of tax evasion, along with a $250,000 fine on each count.

An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.

Acting Assistant Attorney General Ciraolo and U.S. Attorney Cotter thanked special agents of IRS-Criminal Investigation, who investigated the case and Assistant U.S. Attorney Chad Spraker of the District of Montana and Trial Attorney Rebecca J. Sable of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.