Three stories today, all with a recurring theme: fraud. We’ll look at a new but not so good method to sell for less. Then we’ll take a peak at two accountants, and how they made money…for themselves.
Tommy James Hudgins owns Affordable Tires in Chattanooga, Tennessee. He found a way to make sure he beat his competitors’ prices: not remitting the sales tax he collected to the state of Tennessee. He did keep his prices down, but the Department of Revenue wasn’t happy with his methods. He’ll spend two years on probation, and must make restitution of $17,000. He may also face civil penalties, according to this story.
In Baltimore, a longtime accountant pleaded guilty to wire fraud, money laundering, and tax fraud charges. Wilkins McNair, Jr. faces up to 38 years in prison, but will likely serve a significantly shorter sentence through his plea bargain. McNair, in the indictment, was accused of avoiding paying $550,000 in taxes by delaying filing his returns and under-reporting his tax. The Baltimore Business Journal has more on this story.
Finally, a pair that were Washington state tax preparers are alleged to have found a not-so-legal method of earning a living. They made up phony tax returns using relatives’ names, and, according to this story, collected about $40,000 in refunds. The story has an interesting twist. The accused are Kandi Rose Roberts, formerly of Bellingham, Washington, and Ernest Roberts, of Everson, Washington. Ms. Roberts moved to Las Vegas and is now known as “Kandi Kroon.” She’s going to be sent to Seattle for trial, so this is one thing that happened in Las Vegas that won’t stay in Vegas….