Ohio Insurance Salesman Arrested on Tax Charges
WASHINGTON - William A. Herder of Mifflin Township, Ohio, was arrested today on federal tax charges, the Justice Department and Internal Revenue Service (IRS) announced. On Nov. 9, 2011, a federal grand jury sitting in Cleveland returned an indictment against Herder, charging him with corruptly endeavoring to impair and impede the due administration of the internal revenue laws, tax evasion and failure to file tax returns.
According to the indictment, Herder, an insurance salesman, has not filed a timely or valid tax return in more than a decade. For the 2000 tax year, Herder allegedly filed a tax return on which he falsely claimed that he had not earned any income. Herder failed to file any tax returns for the 2001-2009 tax years, despite receiving numerous warnings and notices from the IRS.
The indictment further alleges that, to prevent the IRS from collecting his unpaid taxes, Herder attempted to conceal his assets and income. In 2003, Herder allegedly transferred title to his house to a fake foundation he established in Utah called the “Mentor Foundation.” Herder cashed out an Individual Retirement Account and a life insurance policy to further frustrate IRS collections activity. Herder also allegedly attempted to use a fake financial instrument to pay his taxes for the years 2000-2002 as well as a civil penalty that the IRS assessed against him for the year 2000.
In addition to failing to file valid tax returns and hiding his assets from the IRS, the indictment alleges, Herder submitted numerous obstructive letters and documents to the IRS and the companies for whom he sold insurance in an effort to prevent the IRS from assessing and collecting his taxes. In these letters, Herder falsely claimed, among other things, that the tax laws were not applicable to him.
This case is being prosecuted by Trial Attorneys Melissa S. Siskind and Sean R. Delaney of the Justice Department’s Tax Division.
An indictment is only an allegation of criminal conduct and is not evidence of guilt. A person is presumed innocent until and unless proven guilty beyond a reasonable doubt in a court of law.
More information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.