Georgia Man Sentenced to Five Years in Prison for Wire Fraud, Wire Fraud Conspiracy, and Aiding in the Filing of False Tax Returns
CLEVELAND – Timothy Ray Jenkins, 67, of Woodmere, Ohio, was sentenced today to 30 months in prison by U.S. District Judge Pamela A. Barker. Jenkins pleaded guilty to counts one through 11 of an indictment that charged him with failure to account for and pay over taxes. Jenkins was also ordered to serve 3 years of supervised release, and to pay both a $1,100 special assessment and $1,174,677.06 in restitution to the IRS.
According to court documents, Jenkins was the manager and owner of Dan-Ray Construction LLC (DRC), an LLC doing business in and around Cleveland, Ohio that was engaged in the business of construction services, often working as a subcontractor. Jenkins exercised control over DRC’s financial affairs by controlling DRC’s finances, including signing checks and controlling DRC’s bank accounts and overseeing payroll payments. Jenkins was responsible for collecting employment taxes, accounting for employment taxes by filing employment tax returns with the IRS and paying over to the IRS the employment taxes for DRC’s employees. Jenkins had another company prepare payroll and employment tax returns for DRC. Jenkins instructed the company to turn over the employment tax returns and other reports and tax filings that the company had prepared to Jenkins. Jenkins represented that he would file the employment tax returns and other tax filings, but he failed to do so. Jenkins withheld employment taxes from his employees’ paychecks but failed to pay over the employment taxes to the IRS.
This case was investigated by IRS Criminal Investigation (CI). This case is being prosecuted by Assistant U.S. Attorney Elliot Morrison.