Mooresboro, North Carolina, Woman Guilty of Tax Evasion

Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Kelly Sue Reynolds, age 51, of Mooresboro, North Carolina, pled guilty as charged in federal court this morning to five counts of income tax evasion.  The plea was accepted by United States District Judge Timothy M. Cain.  Reynolds faces a possible sentence of up to 25 years in prison and/or a fine of up to $500,000.00.  Judge Cain will sentence Reynolds after the preparation of a Presentence Report.

Evidence presented at the guilty plea hearing established that Reynolds was the bookkeeper for a firm located in Cherokee County, South Carolina.  As part of her duties, Reynolds paid bills for the firm, including the payment of various federal taxes.  In 2014, the Internal Revenue Service (IRS) conducted an audit of the firm Reynolds worked for due to the fact that certain taxes had not been paid.  During the course of that audit, Reynolds admitted that over a five-year period she had embezzled $439,459.97 from her employer. 

Reynolds further stated that she had covered up the embezzlement by falsifying the books, showing that she had paid bills which she in fact had not paid.  Included in the unpaid bills were the missing taxes, which started the investigation.  It was further determined that Reynolds had not filed personal tax returns during those years that she was embezzling funds and that based upon her salary and the money she stole, she owed the IRS $117,300.06 in personal income taxes.  U.S. Attorney Drake explained that income taxes are due both on illegally obtained funds as well as those legitimately earned.  Reynolds has agreed to make restitution in full to both her employer and the IRS as well as agreeing to forfeit to the United States an amount equal to that which she stole from her employer.

U.S. Attorney Drake commended the IRS agents who investigated the case for their dedicated work in this and all of the cases they handle in South Carolina.  Assistant United States Attorney David C. Stephens of the Greenville office prosecuted the case

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