Taco Restaurant Owner Really Cooks the Books

Owner Rogelio Villasenor of the Tacos Michacan restaurant in Boise, Idaho, pleaded guilty to conspiracy to attempt to evade tax.

He failed to report $1,176,506 of income and was sentenced to 41 months in prison, 3 years supervised release, a $20,000 fine and ordered to pay a tax assessment of $329,421 to the IRS.  But most of his unreported income was derived from illegally growing marijuana on public lands, as well as methamphetamine, marijuana and cocaine trafficking.

In addition to his penalty and prison sentence, he had to forfeit real property, bank accounts and a vehicle.


Prison for Under Reporting $15 Million of Income by $15 Million

Bradley T. McKouen, owner of Delta Staffing LLC in Detroit, Michigan was sentenced to 18 months in prison, 2 years supervised release and ordered to pay $319,000 in restitution. As the company was a Schedule C company, McKouen's profits should have been filed on Schedule C of his personal returns.  In 2008, while his gross receipts were approximately $5.7 million, he reported $0 gross receipts, $0 business income, $0 taxable income and $0 income tax due. His actual taxable income was $299,000 and his tax due was $110,000. Under a plea agreement, he is also being held responsible for filing similar zero returns for 2004-2007, the total amount of unreported income of $15 million.


Prison and Fine for Exotic Dancer

Failing to report over $850,000 in income on her 2005-2008 tax returns, Veronica Fairchild of Sioux Falls, South Dakota was sentenced to 33 months in prison, ordered to pay the IRS over $214,000 in restitution and convicted of four counts of tax fraud. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift.


Accounting Firm Owner Sentenced to Prison

Accountant Denise Swanson of Statesville, North Carolina gave new meaning to her company, "Bottom-Line Accounting". Between 2006 and 2012, Swanson performed tax preparation services for her clients and businesses, which also included receiving funds from clients to make tax payments on their behalf.  Instead of paying the IRS, Swanson embezzled the money for her own personal expenses.

Not only was Swanson sentenced to 24 months in prison, 3 years of supervised release and ordered to pay restitution to her clients to the tune of $839,830, she was ordered by the IRS to pay back taxes of $249,912 for failing to report her embezzled income. Swanson had previously pleaded guilty to tax evasion for the year 2010.

You could say "Bottom-Line Accounting" hit rock bottom!