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Press Release

KC Group Home Operator Pleads Guilty to $400,000 Tax Evasion Scheme

For Immediate Release
U.S. Attorney's Office, Western District of Missouri

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the operator of several group homes for mentally and physically handicapped residents in Kansas City, Mo., pleaded guilty in federal court today to a nearly $400,000 scheme to evade paying taxes.

 

Dedree R. Carlisle, 53, of Kansas City, Mo., waived her right to a grand jury and pleaded guilty before U.S. District Judge Dean Whipple to a federal information that charges her with attempting to evade taxes.

            Carlisle has owned and operated a group home health care business at multiple locations in Kansas City, Mo., since 2005. Originally Carlisle’s business was called “Carlisle – Garden of Peace” but she changed the name in 2009 to “Mracles Residential Care.” Mracles cares for mentally and physically handicapped residents in a group home setting, leasing multiple houses in residential neighborhoods, under contracts with the Missouri Department of Social Services. Mracles has had between 12 and 20 employees at its multiple residences.

 

By pleading guilty today, Carlisle admitted that she engaged in a scheme to defraud the IRS and the state of Missouri for the purpose of evading payment of at least $397,213 in federal and state taxes, penalties and interest, beginning in 2006.

 

Carlisle failed to pay over employment taxes totaling $131,649 for her residential health care facilities from 2008 to 2010. Carlisle also willfully failed to file her 2009 and 2010 individual tax returns, and evaded state employment and income taxes during that period.

 

Carlisle admitted that she gambled heavily, including at 7th Street Casino in Kansas City, Kan., with funds debited directly from her business accounts. Carlisle used her business accounts as her personal charge accounts. She did not report, on her tax returns, many of these personal expenses as income, including charges for thousands of dollars made on business debit cards from 2006 through 2010 at Kansas City area casinos. Carlisle spent a total of $127,165 at 7th Street Casino from 2008 to 2010. Casino records show that Carlisle had winnings of $320,200 in 2010, $145,200 in 2009 and $29,219 in 2008.

 

Carlisle also wrote checks to herself from her business bank account in 2010 with references in the memo line to payroll, bonus, draws or advances totaling $65,000.

 

Carlisle was repeatedly notified of the amounts of her substantial taxes, penalties and interest due. Carlisle was notified in June 2011 that she was the subject of a criminal investigation. Although she continued to withhold taxes from her employees’ paychecks, Carlisle continued to fail to pay over employment taxes.

 

Under federal statutes, Carlisle is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

 

This case is being prosecuted by Assistant U.S. Attorney Daniel M. Nelson. It was investigated by IRS-Criminal Investigation and the Missouri Department of Revenue.

Updated March 9, 2016

Topic
Tax