Rose City Dentist Arrested For Refusing To Pay His Taxes
A Rose City dentist was arrested and arraigned yesterday in federal court on an indictment charging him with one count of evasion of payment of federal income taxes, one count of mail fraud and one count of making false statements to the IRS, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Arrested was Carter White Rae, of Rose City, Michigan.
According to court records, Rae refused to pay his United States and the State of Michigan taxes from 2001 to 2011. Rae sought to avoid paying taxes by various means, including using the employer identification number (EIN) of the former owner of the dental practice run by Rae. He also opened and used a business bank account using the name and the EIN of the former owner of the practice. He closed his personal bank account, and used the business bank account, cash and money orders to pay his personal expenses. Rae attempted to trick the IRS by characterizing payments to his wife as “payroll” expenses. His wife rarely worked for his dental business; in fact she lived in a different state. Rae further attempted to relieve himself of his tax burden by filing bankruptcy.
The defendant faces a maximum term of imprisonment of 5 years on both counts one and three, and a maximum term of up to 20 years on count two of the indictment. The defendant face fines of $250,000 on all counts. The actual sentence imposed, if convicted, would depend on a number of factors, including the advisory sentencing guidelines.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial at which it will be the government's burden to prove guilt beyond a reasonable doubt.
The case was investigated by special agents of the IRS-Criminal Investigation and is being prosecuted by the U.S. Attorney’s Office in Bay City.