Houston Physician Admits to Failing to Timely File Tax Returns for more than 20 Years

HOUSTON – A physician who has practiced in Houston for more than 30 years has entered a guilty plea to tax evasion, announced U.S. Attorney Ryan K. Patrick.

Edward J. Crouse acknowledged in the plea agreement that he has not timely filed an individual income tax return since 1997.  According to the plea agreement, Crouse earned more than $4.4 million from 2009 - 2012. 

Crouse consistently committed numerous affirmative acts of tax evasion over the years to conceal his true income from the IRS, including concealing the complete business records of his medical practice for calendar years 2006 through 2012 from his bookkeeping and tax return preparation firm. Crouse also admitted he signed an IRS collection form on or about May 1, 2010, in which he understated the amount of his income from his medical practice available for payment of taxes and household expenditures. 

Crouse has agreed that the total intended tax loss in his case was approximately $678,103, which accounts for unpaid individual income taxes as well as the amounts of federal taxes and FICA that Crouse withheld from the wages of his medical practice employees but did not pay over to the IRS. 

He has agreed to pay restitution to the IRS of $678,103. 

Sentencing has been set for Dec. 13, 2018, before Chief U.S. District Judge Lee Rosenthal. At that time, Crouse faces up to five imprisonment and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.       

IRS-Criminal Investigation is conducting the investigation. Assistant U.S. Attorney Charles J. Escher is prosecuting the case.