Former Metro Employee of Trust Bank Sentenced to Serve 30 Months in Federal Prison for $2.3 Million Embezzlement and False Federal Income Tax Return
Oklahoma City, Oklahoma – FRANCIS MICHAEL BOSTICK, of Oklahoma City, pled guilty today to filing a false federal income tax return for 2012 that failed to report more than $325,000 of income, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
On June 6, 2017, a federal grand jury returned an indictment charging Bostick with four counts of false statements on tax returns. The four counts related to tax years 2010, 2011, 2012, and 2013. According to the indictment, Bostick was the owner and operator of an oil field service company, Bostick Services Corporation. It was also alleged that Pioneer Trucking, one of Bostick Services Corporation’s customers, regularly purchased from Bostick’s company "tank bottoms," which are the heavier substances that settle at the bottom of wastewater tanks. Bostick was alleged to have directed Pioneer Trucking to pay for the tank bottoms by checks to Bostick individually, instead of to Bostick Services Corporation. He also allegedly asked Pioneer Trucking to split payments over approximately $9,000.00 into multiple checks, and then he cashed those checks instead of depositing them into any bank account. As a result, it was alleged, Bostick’s CPA was never given information on that additional income, and it was omitted from Bostick’s individual tax returns. The indictment alleged Bostick omitted over $250,000.00 in income in 2010, over $350,000.00 in income in 2011, over $325,000.00 in income in 2012, and over $275,000.00 in income in 2013.
At the plea hearing today before United States District Judge Vicki Miles-LaGrange, Bostick admitted he filed a false tax return for 2012, which claimed $1,506,305.00 in income, when he knew he had made at least an additional $325,000.00 that he had diverted by cashing personal checks from Pioneer Trucking. Bostick admitted he knew he needed to report his entire income, but he intentionally diverted funds and filed a false tax return that did not include his entire income. As part of his Plea Agreement, Bostick has agreed that the total tax loss to the Internal Revenue Service for his conduct is between $250,000.00 and $550,000.00. Bostick has also agreed to pay restitution to the Internal Revenue Service for all taxes due and owing for 2010, 2011, 2012, and 2013.
At sentencing, Bostick faces a maximum sentence of 3 years in prison, 1 year of supervised release, a fine of $250,000, and restitution to the IRS for all related fraudulent tax filings. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by IRS-Criminal Investigations and is being prosecuted by Assistant U.S. Attorney K. McKenzie Anderson.