Muskogee Man Sentenced To 37 Months For Wire And Tax Fraud
Defendant Also Ordered To Pay Restitution In Excess Of $695,000.00
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that DAVID ALLEN EDWARDS, age 69, of Muskogee, Oklahoma, was sentenced to 37 months imprisonment, followed by 3 years of supervised release and a $300 special assessment fee for 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.
It was also ordered that the defendant pay restitution in the amounts of $143,272.88 to Children’s Clinic, PLLC; $18,000.00 to Ron Wright and $534,342.90 to the Internal Revenue Service.
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, presided over the hearing. The defendant will report to the Bureau of Prisons on April 8, 2016, where he will serve his nonparoleable sentence.
First Assistant United States Attorney Doug Horn represented the United States.