Pool Party


In the middle of the dog days of summer, who wouldn’t want to lounge around a private swimming pool with a cool drink in hand and a good book? As reported in an article posted on WCHStv.com, it appears a West Virginia businessman may have had that idea on his mind while paying kickbacks in order to claim bogus business expense deductions on his false tax returns. (It sounds like there’s a whole lot of faking going on there.)

The story states that the 52-year-old salesman submitted dummy invoices to a mining company official, who would falsely certify that non-existent supplies had been delivered to the corporate location. After receiving payment for the bogus supplies, the salesman would then pay the mining company official a kickback for his participation in the scheme. (Approximately $35,000 was paid to the company official for his efforts.) Subsequently, the salesman claimed the kickbacks as legitimate business expenses on his tax returns for two consecutive tax years. (Isn’t it ironic that his new in-ground swimming pool cost $43,000 – the same amount he claimed as legitimate business expenses?)

Needless to say, the 52-year-old fraudster pleaded guilty to filing false tax returns. He could receive up to three years in prison for his criminal acts.

According to the story, another nine defendants allegedly associated with the scheme are scheduled to plead guilty, as well. It looks like the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service and the West Virginia State Police collaborated well together and put an end to a ring of thugs associated with the kickback scheme. (I doubt these individuals will be enjoying the cool waters of the swimming pool anytime soon.)

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Man Pleads Guilty to Tax Fraud in Kickback Scheme,” written by Jeff Morris and published by WCHStv.com on July 9, 2014.

A 52-year-old Logan County man faces up to three years in prison after admitting to filing false tax returns in connection with a kickback scheme that authorities said involved an Arch Coal official.

Gary Roeher of Holden entered a guilty plea Wednesday before U.S. District Judge Thomas Johnston, according to a news release from U.S. Attorney Booth Goodwin’s Office.

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Larry Benson
Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.