Alabama Pharmacist And Wife Indicted On Tax Fraud Charges
MONTGOMERY, Ala. - A husband and wife were indicted by a federal grand jury for conspiring to defraud the United States, tax evasion, and filing a false claim for tax refund, the Justice Department and the Internal Revenue Service (IRS) announced today. The indictment against Thomas K. Frye and Kathy M. Frye, residents of Andalusia, Ala., was returned on Nov. 17, 2010, and unsealed yesterday. The grand jury also charged Thomas Frye with passing fictitious financial instruments.
According to the indictment, beginning in 1999 the Fryes conspired to defraud the United States by submitting IRS forms to their employers that falsely claimed they were exempt from federal income tax. The Fryes also filed false federal income tax returns that understated their income. In late 2008, the Fryes filed a false refund claim with the IRS in the amount of $317,990. When the IRS attempted to collect the back taxes owed by the Fryes, Thomas Frye submitted false financial instruments to the IRS to purportedly pay their taxes. Mr. Frye represented to the IRS that one of the false instruments had a value of $100 billion.
An indictment merely alleges that crimes have been committed, and the Fryes are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Thomas Frye faces a maximum prison sentence of 105 years and Kathy Frye faces a maximum prison sentence of 30 years.
John A. DiCicco, Acting Assistant Attorney General of the Justice Department's Tax Division, thanked the U.S. Attorney's Office for the Middle District of Alabama, IRS Criminal Investigation agents who investigated this case, as well as Tax Division trial attorneys Charles M. Edgar, Jr. and Michael Boteler, who prosecuted the case.
More information about the Justice Department's Tax Division and its enforcement efforts is available at http://www.justice.gov/tax/.