More ARL clients facing criminal charges

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
FRIDAY, OCTOBER 22, 2010 (202) 514-2007
WWW.JUSTICE.GOV TDD (202) 514-1888

VIRGINIA COUPLE CHARGED WITH TAX CRIMES
WASHINGTON – A Newport News, Va., federal grand jury has indicted a married couple for conspiring to defraud the United States, the Justice Department and the Internal Revenue Service (IRS) announced today. The grand jury indicted Kathryn Charles Miles and John Scott Miles of Mathews County, Va. In addition, Kathryn Miles is charged with filing false tax returns, and John Miles is charged with failing to file tax returns. The court has not yet set a trial date.
According to the indictment, Kathryn and John Miles jointly operated a construction business called “Scotts Construction” and “KCM Construction & Design,” out of their residence. Kathryn Miles, a nurse, filed six false tax returns for tax years 2000 through 2005 and attached false documents to each tax return. Additionally, according to the indictment, John Miles did not timely file tax returns with the IRS for tax years 2004 and 2005. In 2001, Kathryn Miles and John Miles paid $200 to American Rights Litigators, a business that sold and promoted tax defiance schemes. An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Kathryn Miles faces a maximum of 23 years in prison and a maximum fine of $1.75 million. If convicted, John Miles faces a maximum of seven years in prison and a maximum fine of $350,000.
The case is being investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Brian Samuels and Tax Division Trial Attorney Justin K. Gelfand.
More information about the Justice Department’s Tax Division and its enforcement efforts is available at www.usdoj.gov/tax/.

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
TUESDAY, MARCH 22, 2011 (202) 514-2007
WWW.JUSTICE.GOV TDD (202) 514-1888

VIRGINIA COUPLE PLEADS GUILTY TO TAX FRAUD CONSPIRACY

WASHINGTON – Kathryn Charles Miles and husband John Scott Miles, of Mathews County, Va., pleaded guilty to conspiring to impair and obstruct the IRS in the ascertainment and assessment of federal income taxes from 2001 through 2010.

The pleas were announced by U.S. Attorney for the Eastern District of Virginia Neil H. MacBride, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division John A. DiCicco and the Internal Revenue Service (IRS).

Kathryn Miles, who was charged in October 2010, pleaded guilty March 19, 2011, before U.S. District Judge Raymond A. Jackson in Norfolk, Va. John Miles pleaded guilty today.

At her plea hearing, Kathryn Miles admitted to earning taxable income as a nurse at various Virginia hospitals and with her husband, as an owner and operator of a construction business named “Scotts Construction” and “KCM Construction & Design.” Kathryn Miles and John Miles admitted that in 2001 they joined American Rights Litigators, a business they knew sold and promoted abusive tax schemes, and maintained an annual membership. Kathryn Miles also admitted that, in 2005 and 2006, she submitted six tax returns to the IRS in which she falsely claimed that she earned no wages and in which she did not disclose the operation of her construction business. Kathryn Miles submitted falsified tax documents with each tax return she filed with the IRS and John Miles admitted that he did not file tax returns for tax years 2004 and 2005, despite being required to do so by law.

Judge Jackson released the defendants on bond pending sentencing. Kathryn Miles’s sentencing is scheduled for June 30, 2011 and John Miles’s sentencing is scheduled for July 11, 2011. Both defendants face a maximum potential penalty of five years in prison and a $250,000 fine, and both defendants have agreed to pay all taxes, interest and penalties.

U.S. Attorney MacBride and Principal Deputy Assistant Attorney General DiCicco commended the investigative efforts of the IRS agents involved in this case, as well as Assistant U.S. Attorney Brian Samuels and Tax Division Trial Attorney Justin Gelfand, who are prosecuting this case on behalf of the United States.

Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at www.usdoj.gov/tax.

[Demosthenes]

FOR IMMEDIATE RELEASE TAX
MONDAY, JULY 11, 2011 (202) 514-2007
WWW.JUSTICE.GOV TTY (866) 544-5309

VIRGINIA COUPLE SENTENCED FOR CONSPIRACY TO DEFRAUD THE UNITED STATES

Husband Sentenced to 30 Months in Prison; Wife Sentenced to 20 Months in Prison

WASHINGTON – A husband and wife from Mathews County, Va., were sentenced today for conspiring to impair and obstruct the Internal Revenue Service (IRS) in the ascertainment and assessment of federal income taxes from 2001 through 2010, the Justice Department and the IRS announced. John Scott Miles was sentenced to 30 months in prison and Kathryn Charles Miles was sentenced to 20 months in prison. Both were sentenced to three years of supervised release and ordered to pay $215,591.27 in restitution.

John Miles and Kathryn Miles were charged in October 2010 and pleaded guilty in March 2011 before U.S. District Judge Raymond A. Jackson in Norfolk, Va., who sentenced them today.

At their plea hearings, Kathryn Miles and John Miles admitted to earning taxable income as the owners and operators of a construction business named “Scotts Construction” and “KCM Construction & Design.” Kathryn Miles also admitted to earning taxable income as a nurse at various Virginia hospitals. The Miles’ joined American Rights Litigators, a business they knew sold and promoted tax avoidance methods, in 2001 and maintained an annual membership. Kathryn Miles admitted that, in 2005 and 2006, she submitted six tax returns to the IRS in which she falsely claimed that she earned no wages and in which she did not disclose the operation of her construction business. She submitted falsified tax documents with each tax return. John Miles admitted that he did not file tax returns during the time of the conspiracy.

U.S. Attorney for the Eastern District of Virginia Neil H. MacBride and Principal Deputy Assistant Attorney General for the Tax Division John A. DiCicco commended the investigative efforts of the IRS agents involved in this case, as well as Assistant U.S. Attorney Brian Samuels and Tax Division Trial Attorney Justin Gelfand, who are prosecuting this case on behalf of the United States.