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Press Release

Former Chief Financial Officer Sentenced to 12 Months in Federal Prison for Tax Evasion

For Immediate Release
U.S. Attorney's Office, Eastern District of Washington
Spokane, Washington Man Sentenced in Federal Court

Spokane – William D. Hyslop, United States Attorney for the Eastern District of Washington, announced that William Keith Jones, age 59, of Spokane, Washington, was sentenced today after having pleaded guilty on January 23, 2019, to four counts of income tax evasion. Senior United States District Judge Wm Fremming Nielsen sentenced Jones to a 12-month and one day term of imprisonment, to be followed by 3 years of court supervision after he is released from federal prison, and to pay $403,187 in restitution to the IRS and another victim of his conduct.

According to information disclosed during court proceedings, Jones abused his executive position at Fasteners Inc. and his specialized accounting knowledge to fraudulently divert company funds to pay for a variety of his personal expenses, including purchase of a Harley Davidson motorcycle, remodeling work at his residence and college tuition for his children. Jones misused the company’s internal accounting software to falsely code his payment of personal expenses with company funds in a manner that avoided detection by his employer and the IRS.

United States Attorney Hyslop said, “Corporate executives, such as Jones, have a duty to not abuse their position of trust. They cannot divert monies from the corporation for their personal use and benefit and cannot manipulate the corporation’s internal books to conceal their actions. The vast majority of Americans file honest tax returns and pay their fair share of taxes every year. Those who may intentionally conceal their income from the IRS and evade taxes will be prosecuted and risk imprisonment, as reflected by Jones’ sentence. I commend the outstanding work of the IRS Criminal Investigation and the FBI agents who investigated this case.”

“Mr. Jones spent years stealing from Fasteners Inc. by disguising his personal purchases as legitimate business expenses. His concealment efforts were acts taken to intentionally evade his personal income tax obligation,” said IRS-Criminal Investigation Special Agent in Charge Justin Campbell. “IRS-Criminal Investigation will continue to hold accountable executives who abuse their position of power and steal from the community and the U.S. tax system.”

This case was investigated by the Internal Revenue Service - Criminal Investigation and the Federal Bureau of Investigation. This case was prosecuted by George J.C. Jacobs, III, Assistant United States Attorney for the Eastern District of Washington.

Updated December 4, 2019

Press Release Number: 2:18-CR-00113-WFN