Ohio Electrical Engineer Convicted of Tax Evasion
Used Fraudulent Trust to Evade More than $500,000 in Taxes Owed to IRS
A federal jury convicted a Liberty Center, Ohio man on Oct. 6 of tax evasion after he used a sham trust to help conceal three years of income he earned from his business.
According to court documents and evidence presented at trial, John Everson owned an electrical engineering business. From approximately 2012 through 2015, Everson earned more than $1.3 million in income from the business. He attempted to conceal much of this income and evade personal income taxes he owed to the IRS by instructing his clients to pay a trust that he controlled. Everson used the money in the trust to pay personal expenses and make large cash withdrawals. He also funneled some of the trust funds to other bank accounts held in the names of non-profit organizations that he and several family members controlled. To further conceal his income and assets from the IRS, Everson put his home and personal airplane in the name of the non-profit organization. In total, Everson’s conduct caused a loss to the U.S. Treasury of more than $500,000.
Everson is scheduled to be sentenced on March 16, 2023, and faces a maximum penalty of five years in prison on each of the three counts of his conviction. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and tother statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and First Assistant U.S. Attorney Michelle M. Baeppler for the Northern District of Ohio made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorney Sarah Ranney of the Justice Department’s Tax Division and Assistant U.S. Attorney Jody King of the Northern District of Ohio are prosecuting the case.