Georgia Woman Sentenced to Three Years in Prison for Tax Evasion
On Wednesday, 64-year-old Rose Roye of Suwanee, Georgia, received a three-year prison sentence for tax evasion. In addition, Roye was ordered to re-pay $277,671.
Roye was found guilty in a six-day-long jury trial that concluded on June 11.
United States Attorney Sally Quillian Yates released a statement after the sentencing: “This defendant claimed and received a large tax refund to which she wasn’t entitled. Then, instead of paying it back, she hid the money and sent a blizzard of abusive, false, and fictitious documents to the IRS. She’ll pay a substantial price for her actions – both financially and in her prison term.”
Court documents presented during the trial showed that Roye had received a tax refund of $347,000 from the Internal Revenue Service (IRS) that she was not due to her. Roye then transferred the funds between multiple banks in an effort to hide the money from the IRS and make it more difficult from them to re-coup the refund.
The improper movement of the funds started a day after Roye originally received the refund. The following business day Roye moved $300,000 into separate bank accounts in the names of business entities she had established beforehand.
In addition, when a representative of the IRS visited Roye at her home in 2009 to demand repayment of the improper refund, Roye went to the bank to withdraw $170,000.
Roye also mailed various letters and other documents to the IRS that ranged from abusive to misleading in an attempt to convince the IRS to desist from pursuing the funds further. This included a Form 1099-A that indicated the IRS officer assigned to Roye’s case owed Roye $512,855, as well as fictitious bonds that Roye claimed had monetary value and therefore could be used to settle the amount she owed. The bonds ranged in value but the largest Roye claimed had values of $515,000 and $100 billion and therefore she claimed to the IRS the bonds were sufficient to repay the refund amount she owed.
Tax Fraud Leads to Prison Sentence for Three
Three residents of Massachusetts were sentenced today on charges related to conspiracy to commit tax fraud. William Dion, Catherine Floyd, and Charles Adams were all convicted on April 2, 2012, of charges that included tax evasion and obstructing the IRS from calculating their actual income earned.
However, the primary charges related to a payroll scheme whereby money was paid “under the table” to employees. This money was therefore not subject to withholding tax on the wages paid. The payroll scheme was established under three separate entities: Contract America, Talent Management, and New Way Enterprises. The three entities were used to allow employers to pay about 150 individuals wages of more than $2.5 million that were not subject to federal income tax.
In addition, the trio developed a underground banking scheme that was used to hide assets from the IRS. Accounts related to this scheme had approximately $28 million in funds.
Dion received the harshest sentence of the three, with United States District Judge Dennis Worcester giving him 12 years in prison and ordering him to pay $3 million.
The individuals were first indicted in 2009.
- IRS in Hot Water Over Tax Fraud (taxlawhome.com)
Mark has been a contributor to legal web sites related to bankruptcy, tax, and criminal law since 2011. He has an Accounting degree from Texas A&M University.