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Justice News

Department of Justice
U.S. Attorney’s Office
Western District of Pennsylvania

FOR IMMEDIATE RELEASE
Thursday, March 28, 2019

Fayette County Woman Charged with Tax Evasion

PITTSBURGH - A resident of Fayette County, Pa., was indicted by a federal grand jury on charges of tax evasion, United States Attorney Scott W. Brady announced today.

The two-count indictment named Lisa Cavanaugh.

According to the indictment, Cavanaugh engaged in a theft and kickback scheme with another individual known to the grand jury as TK. From January 1, 2012 through May 6, 2013, Cavanaugh evaded and defeated her income taxes for calendar year 2012 by filing a false and fraudulent U.S. Individual Income Tax Return, Form 1040A. In the tax return, Cavanaugh stated that her taxable income for calendar year 2012 was $50,667 and that her tax due was $3,231, when she then and there well knew and believed that her taxable income for calendar year 2012 substantially exceeded $50,667 and that her tax due substantially exceeded $3,231.

Likewise, from January 1, 2013 through March 31, 2014, Cavanaugh evaded and defeated her income taxes for calendar year 2013 from proceeds from the theft and kickback scheme, by filing a false and fraudulent U.S. Individual Income Tax Return, Form 1040. In the tax return, Cavanaugh stated that her taxable income for calendar year 2013 was $45,463 and that her tax due was $3,755, when she then and there well knew and believed that her taxable income for calendar year 2013 substantially exceeded $45,463 and that her tax due substantially exceeded $3,755.

The law provides for a maximum total sentence of 10 years in prison and a fine of $500,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation conducted the investigation leading to the indictment in this case.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

Topic(s): 
Tax
Updated March 28, 2019