Two Sentenced on Tax Charges

PITTSBURGH, PA - A resident of Belle Vernon and a resident of Greensburg, Pennsylvania, have been sentenced in federal court on their convictions of conspiracy and filing a false tax return, United States Attorney Scott W. Brady announced today.

United States District Judge Nora Barry Fischer imposed sentences on Robert Richards and Jennifer Morrison. Richards was convicted of one count of filing a false income tax return, and was sentenced to 4 years’ probation, the first 180 days of which are to be served under home detention. Morrison was convicted of one count of conspiracy to defraud the United States, and was sentenced to two years’ probation, the first 90 days of which are to be served under home detention. Additionally, both Richards and Morrison were ordered to jointly pay $141,732 in restitution and interest to the Internal Revenue Service (IRS), in monthly amounts no less than 10 percent of their individual earnings.

According to information presented to the court, Richards and Morrison, conspired to defraud the United States and the IRS during the period January 2006 to April 2010, by impeding the IRS in the collection of income taxes due from the operation of Richards’ used car dealerships in Greensburg, Jeannette, and McKeesport. Richards secreted his income from the IRS by placing his dealerships and more than 30 business bank accounts, through which he funneled proceeds of his business, in the names of nominee owners. One such nominee was Jennifer Morrison, who handled all of the business bookkeeping and who worked in tandem with Richards to funnel more than $1 million in gross business receipts through the nominee accounts. Richards and Morrison extracted funds from the business accounts for personal expenditures.

Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.

Pennsylvania State Police and the Internal Revenue Service conducted the investigation that led to the successful prosecution of Richards and Morrison.