Former Louisville Business Owner Sentenced To 27 Months In Prison For Failure To File Income Tax Returns And Tax Evasion
LOUISVILLE, Ky. – United States Attorney Russell M. Coleman, today announced the sentencing of former Louisville business owner Lawrence P. Tatem, in United States District Court, by Senior Judge Charles R. Simpson III, to 27 months in prison and one year supervisory release, for willful failure to file federal income tax returns during a four-year period and evasion of payment of taxes, penalties, and assessments totaling $533,498 from a two-year period.
According to the charges, Tatem, 50, willfully attempted to evade and defeat the payment of a large part of the federal income tax, penalties, and interest due by him to the United States of America, for the calendar years 2002 through 2004, totaling approximately $533,498, by concealing his assets; by changing the names and locations of his rehabilitation businesses; by placing his businesses in the names of nominees J.S., D.R., and M.Z.; by closing bank accounts at Republic Bank after the Internal Revenue Service attempted to levy funds from the accounts, and opening new bank accounts at Chase Bank under different names; and by operating in cash without keeping proper records of cash transactions.
Further, Tatem admitted to willful failure to file federal income tax returns for calendar years 2010 to 2013. Specifically, during the calendar year 2010, Tatem received gross income of approximately $252,860 and failed to file a federal tax return by April 15, 2011. During calendar year 2011, Tatem received gross income of approximately $45,353 and failed to file a federal tax return by April 15, 2012. During calendar year 2012, Tatem received gross income of approximately $199,067 and failed to file a federal income tax return by April 15, 2013. During the calendar year 2013, Tatem received gross income of approximately $120,994 and failed to file a federal income tax return by April 15, 2014.
This case was prosecuted by Assistant United States Attorney Amanda Gregory and was investigated by the Internal Revenue Service Criminal Investigation Division.