Defendant owes IRS over $2.4 million in taxes
INDIANAPOLIS - United States Attorney Josh J. Minkler announced today that Scott C. Cole, 55, Brownsburg, Indiana, was sentenced to 30 months in prison by United States District Chief Judge Jane Magnus-Stinson. Cole previously pleaded guilty to a charge of tax evasion.
“Cole, a former attorney and paid tax preparer, intentionally and purposely used his ‘expertise’ to repeatedly obstruct the Internal Revenue Service and to evade his federal tax obligations," said Minkler. “Taxpayers who deceive and defraud the federal government by deliberately failing to pay their federal income taxes, like Cole, will be found and prosecuted."
“The Tax Division with its partners in the United States Attorneys’ Offices and the Internal Revenue Service (IRS) will prosecute tax professionals, such as Cole, who abandon their professional ethics and instead willfully commit tax fraud," said Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Tax Division.
According to Chief Judge Magnus-Stinson, the IRS did not succumb to the defendant’s attempt to wear them down and the defendant has no credibility before the court. Stinson also said, “Cole has a complete lack of respect for the law, for the tax code, his fellow citizens and for the court."
Cole attempted to evade and defeat tax payments by opening bank accounts with sham 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.
The court found that the defendant owes $2,410,443 to the IRS.
This case was investigated by the Internal Revenue Service Criminal Investigation.
Kathy A. Enstrom, Special Agent in Charge of IRS Criminal Investigation said, “After years of deceit, Scott Cole has been dealt the consequences of evading his federal income taxes. Our sworn mission is to protect the federal tax system from those that cheat it. Today’s sentencing of Mr. Cole emphasizes the Internal Revenue Service will continue their pursuit of those who use fraudulent methods to corrupt our nation’s tax system."
According to Assistant United States Attorney James M. Warden and Assistant Chief Stanley J. Okula of the Tax Division, who prosecuted this case for the government, Cole will serve two years of supervised release following his imprisonment and pay 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
