Tennessee Dentist Pleads Guilty to Tax Evasion
Failed to Pay Over $528,000 in Personal Income and Employment Taxes Used Nominees to Buy Exotic Cars and Home
A Shelby County, Tennessee, dentist pleaded guilty today to tax evasion, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Michael Dunavant for the Western District of Tennessee.
According to documents and information provided to the court, Andrea M. Henry, 44, owned The Henry Polk Dental Group D.P.C. and The Smile Spa LLC, dental practices located in Cordova, Tennessee. Henry filed personal income tax returns for 2005, 2006, 2008 and 2010 to 2013, but did not pay $113,781 in income and self-employment taxes due to the Internal Revenue Service (IRS). Henry also failed to pay over the employment taxes withheld from her employees’ paychecks for numerous quarters between 2006 and 2015. The IRS assessed over $160,000 in trust fund recovery penalties against Henry, making her personally liable for the unpaid employment taxes.
Instead of paying the taxes owed, Henry spent hundreds of thousands of dollars on personal expenses, including private school tuition, expensive housing and luxury cars. After the IRS assessed penalties against her, Henry stopped using personal bank accounts and instead began using business accounts to pay for personal expenses. In early 2011, prior to her home being foreclosed on, Henry transferred $130,000 to a nominee buyer, entered a sham lease arrangement with the nominee to create a false explanation as to the source of the funds in the nominee’s bank account, and caused the nominee to repurchase the home for her. Henry later used that same nominee and other nominees to purchase and lease exotic cars, including a Dodge Viper and a Porsche Panamera. Henry admitted to causing a tax loss of $528,882.07.
Sentencing is scheduled for Jan. 12, 2018 before U.S. District Court Judge John T. Fowlkes Jr. Henry faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and U.S. Attorney Dunavant commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Damon Griffin, who are prosecuting the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.