Muskogee Man Pleads Guilty To Wire Fraud, Tax Fraud And Failure To Pay $500,000 In Taxes
For Immediate Release
U.S. Attorney's Office, Eastern District of Oklahoma
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID ALLEN EDWARDS, age 69, of Muskogee, Oklahoma, pled guilty to an Information charging him with WIRE FRAUD, in violation of Title 18, United States Code, Section 1343; TAX FRAUD, in violation of Title 26, United States Code, Section 7206(1) and FAILURE TO ACCOUNT FOR AND PAY EMPLOYMENT TAXES OWED, in violation of Title 26, United States Code, Section 7202.
The charges arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation and the Internal Revenue Service - Criminal Investigation Division.
The Information filed on July 6, 2015, alleged that on or about January 9, 2014, within the Eastern District of Oklahoma and elsewhere, the defendant devised and intended to devise a scheme and artifice to defraud Children's Clinic, PLLC to obtain money and property in the amount of $403,307.09 by means of materially false and fraudulent pretenses, representations and promises.
Further investigation revealed that on or about June 2, 2011, the defendant willfully made and subscribed a false 2010 Form 1040, U.S. Individual Income Tax Return, which contained and was verified by a written declaration that it was made under the penalties of perjury, and which he did not believe to be true and correct as to every material matter, in that he knowingly reported a false Adjusted Gross Income by failing to report $116,610.00 in additional income that was fraudulently obtained from Children’s Clinic, PLLC.
Agents also discovered that Office Medic, Inc., which is owned and operated by the defendant, withheld payroll taxes from its employees' paychecks, including federal income taxes, Medicare and social security taxes but failed to send $534,342.09 in withholdings to the Internal Revenue Service.
The Honorable Frank H. Seay, Senior District Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. The defendant will remain on bond pending sentencing.
The statutory range of punishment is up to 20 years imprisonment, a fine of up to $250,000.00 or both.
First Assistant United States Attorney Doug Horn represented the United States.
Updated February 4, 2016
Health Care Fraud