Trustee Sentenced To 33 Months In Federal Prison And Ordered To Pay $211,165 In Restitution On Tax Evasion Conviction
LUBBOCK, Texas — Randy Lynn White was sentenced today by U.S. District Judge Sam R. Cummings to 33 months in federal prison, a term of three years supervised release, and ordered to pay $211,165 in restitution, following his guilty plea in June 2013 to an Information charging one count of tax evasion. Judge Cummings ordered that White surrender to the Bureau of Prisons on November 7, 2013. Today’s announcement was made by U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.
According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008 and 2009 in order to evade the payment of taxes due and owing to the United States. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.
White was the sole trustee of the Frank F. McMordie Jr Family Trust, f/b/o Frank F. McMordie III (the “Trust”). According to the factual resume, White admits that he derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests. White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry and cars.
The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico. White also admits that as part of his scheme to evade taxes, he disguised many of the funds that he diverted from the Trust’s bank account to his personal use by placing false business notations on the checks, falsely claiming that the expenditures were for business purposes. These checks falsely indicated that he was using the funds to operate what he designated as the “south” ranch. He falsely indicated that he was using the money for ranch operating expenses, such as cattle vaccines, loading chutes, cattle guards, trailers for the south ranch, fencing, and south ranch payroll, when, in fact, the Trust did not operate any ranch whatsoever.
The case was investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo prosecuted.