Timeshare Salesman Now Sharing His Time in Jail Cell
A timeshare salesman in Virginia, Gregory Overton Powell, 62, was charged with evading his federal income tax obligations for approximately 13 years. Powell made roughly $300,000 a year between 2006 and 2016, but neglected to file his tax returns on time and made minimal payments towards his tax liabilities. He owed more than 1.4 million dollars in taxes and penalties for that same time period.
On two separate occasions IRS agents allowed Powell to set up an installment agreement for back taxes, provided he adjust his tax withholdings. But Powell reneged on the terms of both agreements and falsely told his employer that he was exempt from tax, preventing any withholding from his salary.
Powell took other steps to avoid paying his tax debt. He failed to report his ownership of a 34 foot speedboat on a collection statement, he had his wife purchase and hold title to real property as a nominee in order to obstruct collection efforts, and convinced another person to take nominal title of a different property he owned in Newport News, Virginia.
Powell was sentenced to 40 months in prison followed by three years of supervised release. He was ordered to pay restitution to the IRS in the amount of $1,405,954.
A Bunch of Jail Time for a Brady
Monique Brady owned a property rehabilitation business that turned out to be a 10.3 million dollar Ponzi scheme. From 2014 through the summer of 2018 she claimed to be overseeing major renovations on foreclosed properties under contract with lenders such as Freddie Mac. She promised investors half the profits from the sale of the properties, but instead used the funds raised for plastic surgery, to pay her mortgage, to gamble and to take extravagant vacations.
When Brady found out she was the subject of an IRS investigation, she asked her investors, many were close friends, to delete all emails, texts and documents relating to their investments in her business.
Brady was sentenced to eight years in prison and three years of supervised release for obstructing an IRS investigation, wire fraud and identity theft. She was ordered to pay 4.78 million dollars in restitution.
Alabama Shakes Down Tax Evader
Alabama resident John Cooney has pleaded guilty to tax evasion.
In 2011 Cooney filed delinquent tax returns for 2008 through 2010, and admitted that he owed the IRS almost $780,000, but failed to include a payment with his returns.
To evade the tax debt and future taxes, Cooney created an entity, GVA Advisors LLC, and directed income from his employer and dividends from his investments into an account in GVA’s name.
Cooney deposited more than $435,000 from 2013 through 2016 into the GVA account, concealing the funds from the IRS.
By 2017 Cooney owed more than 1.3 million dollars in outstanding taxes, penalties and interest.
Cooney faces a maximum sentence of five years in prison and has agreed to pay $1,311,904 in restitution.
We at Jim Matthews CPA are experts in tax resolution and help taxpayers like you with their IRS Problems every day!