Pittsburgh Resident Indicted for Fraud and Conspiracy to Maliciously Destroy East Carson Street Property by Fire
PITTSBURGH- Two individuals pleaded guilty in federal court to a charge of conspiracy to defraud the United States in the computation and collection of individual and corporate income taxes, United States Attorney David J. Hickton announced today.
Paul Schneider and Lynda Schneider, husband and wife, pleaded guilty to one count each before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that the Schneiders failed to file individual or corporate income taxes for themselves and their business, Cedar Direct, a company which designs and promotes the manufacture of log homes between 2006 and 2009. The defendants evaded the payments of taxes by using their corporate business checking account to pay personal expenses, by failing to maintain assets in their own names, and by failing to report or pay individual or corporate income taxes.
Judge Fischer scheduled sentencing for October 28, 2015. The law provides for a total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued the Schneiders on bond.
Assistant United States Attorney Margaret E. Picking is prosecuting this case on behalf of the government.
The Internal Revenue Service-Criminal Investigations conducted the investigation that led to the prosecution of Paul and Lynda Schneider.