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Justice News

Department of Justice
U.S. Attorney’s Office
Eastern District of Kentucky

FOR IMMEDIATE RELEASE
Thursday, September 2, 2021

Ft. Thomas Man Sentenced to 33 Months for Wire Fraud and Tax Evasion

 COVINGTON, Ky. — A Fort Thomas, Ky., man, Kevin R. Welsch, 48, was sentenced on Thursday, by Chief U.S. District Judge Danny C. Reeves, to 33 months, after previously pleading guilty to federal charges of wire fraud and tax evasion.

In his guilty plea, Welsch admitted defrauding clients of the debt collection business he owned and operated, RCC Services, Inc.  Specifically, he admitted to collecting debts on behalf of creditors and keeping the money for his own use.  He also admitted to collecting more than debtors owed (sometimes making multiple, unauthorized debits from their accounts) and charging his clients for fees/expenses that he never actually incurred.  Finally, Welsch admitted evading taxes in the process.

Welsch pleaded guilty in May 2021.

Under federal law, Welsch must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Restitution has yet to be determined.

Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; Edward J. Gray., Acting Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, announced the sentencing.

The investigation was conducted by the IRS CI, the FBI, and the Ft. Thomas Police Department.  The United States was represented in the case by Assistant United States Attorney Elaine K. Leonhard.

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Topic(s): 
Tax
Contact: 
CONTACT: Gabrielle Dudgeon PHONE: (859) 685-4887 E-MAIL: gabrielle.dudgeon@usdoj.gov
Updated September 2, 2021