Grand Junction Business Owner Charged With Income Tax Evasion

DENVER – Michael E. Ho, age 68, of Grand Junction, Colorado, was indicted by a federal grand on October 28, 2014 on charges of income tax evasion, United States Attorney John Walsh and IRS Criminal Investigation Special Agent in Charge Stephen Boyd announced.  Ho was arrested yesterday without incident and appeared before a U.S. Magistrate Judge in Grand Junction federal court for his initial appearance, where he was advised of his rights, the charges pending against him, and the penalties associated with those charges.  The indictment remained sealed until his initial appearance.

According to the indictment, Ho a resident of Grand Junction and owner of Five-O Enterprises, Inc. (hereinafter “Five-O”), had and received taxable income which was owed to the United States of America an income tax.  He willfully attempt to evade and defeat the income tax due and owing by him for the following years:

Year	Taxable Income	Tax Owed
2006	$292,455	$41,682
2007	$214,927	$31,746
2008	$320,647	$69,473
2009	$213,887	$40,578
2010	$124,244	$11,919
2011	$208,537	$40,052

Ho evaded income tax due and owing by committing affirmative acts of evasion.  Specifically, between 2006 and 2010, he attempted to conceal his ownership in, and income from a dental practice known as Skyline Dental in Grand Junction, Colorado.  Ho operated as a d/b/a (“doing business as”) of Five-O. Ho owned the building in which Skyline Dental was located, and a “consulting” contract with the on-site dentist gave Ho control over almost every aspect of the practice. 

In 2009 Ho instructed an accounting firm not to issue a Form 1099 to him for $156,005 in interest payments he received in 2008.  In March 2010, Ho converted Skyline Dental to a non-profit corporation called Colorado Community Dental Services, and continued to operate, control and receive income from the dental practice. Between 2006 and 2011, HO willfully and intentionally failed to disclose true and accurate information to his accountant/tax preparer regarding.

Furthermore, Ho did not timely file personal or business income tax returns with or make timely tax payments to the IRS for the tax years 2006 through 2011.  In February 2013, after learning of an IRS investigation, Ho caused the preparation and filing of U.S. Income Tax Forms 1040, as well as Forms 1120S prepared for Five-O, for the tax years 2006 through 2011. The income information reported on the forms was false. The Forms 1120S failed to properly report all income earned by Five-O d/b/a Preventative Dental, which unreported income would have flowed through to Ho’s Forms 1040.

Ho was charged with six counts of income tax evasion which carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.

This case was investigated by Internal Revenue Service – Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Michelle M. Heldmyer.

The charges contained in the indictment are allegations, and the defendant is presumed innocent until proven guilty.