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Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Texas

FOR IMMEDIATE RELEASE
Tuesday, September 13, 2022

Local man sent to prison for tax evasion and bankruptcy fraud

HOUSTON – A man who evaded payment of his income taxes has been ordered to federal prison, announced U.S. Attorney Jennifer B. Lowery.

David Felt pleaded guilty May 9.

Today, U.S. District Judge Andrew Hanen ordered Felt to serve 18 months in federal prison. Judge Hanen also ordered Felt to pay $250,000 in restitution to the IRS.

According to the plea agreement filed in the record of the case, Felt admitted that he willfully evaded payment of income taxes he owed for 1986-87 and 1994-98. 

He further admitted he received over $4 million in income during 2004-14, none of which was paid towards the owed taxes. Felt falsely stated he had no significant assets or income and had no ownership in any businesses.

In addition, he also admitted he acted as a disbursing agent for a debtor in a bankruptcy case. He testified in 2017 that he would not pay insiders from the estate of the debtor while the debtor paid creditors. However, as part of his plea, he admitted he filed monthly accounting reports for the debtor in 2019 containing payments to insiders, including himself, from the estate of the debtor.

Felt was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.

IRS - Criminal Investigation and the FBI conducted the investigation with the assistance of the U.S. Trustee's Office. Assistant U.S. Attorneys Quincy L. Ollison and Charles J. Escher prosecuted the case.   

Topic(s): 
Tax
Updated September 14, 2022