Tampa, Florida - U.S. District Judge Virginia M. Hernandez Covington today sentenced John D. Stanton, III (64, Tampa) to 10 years in federal prison for attempting to interfere with the Internal Revenue laws and failing to file income tax returns. The court also ordered Stanton to pay restitution to the Internal Revenue Service in the amount of $37,816,875.00. Stanton was found guilty on Dec. 17, 2012 by a federal jury.
According to evidence presented at trial, Stanton was the former president of Florida Engineered Construction Products Corporation ("FECP"), more commonly known as Cast Crete Corporation. FECP/Cast Crete manufactured and sold concrete construction products. As president of the company, Stanton interfered with the administration of the tax laws by impeding an Internal Revenue Service ("IRS") audit of the company, creating and backdating two fraudulent demand promissory notes totaling $500,000,000, causing false Forms 1099 to be filed with the IRS, failing to file corporate tax returns on behalf of the company, and other acts of obstruction and concealment. During approximately 2004 through 2008, the company made well over $100 million and failed to file a single corporate income tax return.
Additional trial evidence showed that Stanton failed to file corporate tax returns on behalf of Denouement Strategies, Inc., for 2006 and 2007. Stanton controlled Denouement Strategies and transferred over $43 million worth of FECP/Cast Crete profits into the Denouement Strategies bank accounts in 2005, 2006, and 2007. Stanton also failed to file personal income tax returns for 2005 and 2007.
“Today the Internal Revenue Service continued its core mission to protect the integrity of the tax system as John D. Stanton III’s was sentenced to 10 years in prison following a trial and guilty verdict earlier this year," stated James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service-Criminal Investigation. “Stanton used his education and skills as a MBA and CPA to purposefully impede the Internal Revenue Service, depriving the U.S. government and its citizens of in excess of $60 million in tax revenue and now he, and those close to him, are paying a high price for this breach of trust. Violations of Internal Revenue laws are not victimless crimes and this sentence should serve as a reminder to all Americans of the consequences of purposefully flouting their civic responsibilities and the Internal Revenue laws."
This case was investigated by Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Robert Monk and Matthew Mueller.
Source: U.S. Department of Justice, Office of the United States Attorneys
