Alleged to owe over $1 million in taxes
PRESS RELEASE
Indianapolis-Josh J. Minkler, the United States Attorney for the Southern District of Indiana, announced today the indictment on federal tax evasion charges against a Brownsburg man. Scott C. Cole, 53, was indicted on two counts of tax evasion.
“We all have an obligation to pay our share of taxes to keep our government operating," said Minkler. “Those who choose to steal from the government and expect others to carry the tax burden will be held accountable."
The indictment alleges that on April 11, 2008, the IRS mailed a notice to Cole and his wife stating they omitted approximately 1.2 million of income and approximately $1.3 million in self-employment income from their 2001 tax return. The IRS assessed an income tax deficiency of $556,187 and a fraud penalty of $417,140. Further, the tax court ruled that Cole’s 2002 tax return was deficient by nearly $54,000, assessing a penalty of $40,458 in addition to the $14,261 that was due. Cole disputed his tax liability but the Federal Tax Court and the U.S. Court of Appeals affirmed the IRS assessment.
The indictment further alleges that Cole attempted to evade and defeat tax payments by opening bank accounts with artificial company names and directed payment for services he rendered to the same artificial companies. He paid personal expenses through third-party business accounts, dealt extensively in cash and filed false 1040 tax returns understating taxable income.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Gabriel Grchan, Special Agent in Charge of IRS Criminal Investigation stated, "I am pleased to join the United States Attorney in announcing tax evasion charges against Mr. Cole. IRS-Criminal Investigation is the first line of defense against those that choose to evade their federal tax obligations. With the 2018 tax filing season upon us, these charges should send a strong warning that those who illegally hide their income will be held accountable."
Cole had his initial appearance before a magistrate judge yesterday. He was released on GPS monitoring and must follow a strict curfew. His trial date is set for March 19, 2018.
An indictment is only a charge and not evidence of guilt. All defendants are presumed innocent until proven otherwise in federal court.
According to Assistant United States Attorney James M. Warden who is prosecuting this case for the government, Cole faces up to five years’ imprisonment and a fine of up to $250,000 for each count if convicted as well as full restitution to the government.
In October 2017, United States Attorney Josh J. Minkler announced a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the office’s firm commitment to utilize and partner with the law enforcement agencies to prosecute individuals engaged in income tax evasion. See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 5.4.
Source: U.S. Department of Justice, Office of the United States Attorneys
