Columbus Regional Health Employees Sentenced for Wire Fraud and Tax Evasion

Carol Adcock and Barbara McFerrin, former employees for Columbus Regional Health, were sentenced on August 22nd for wire fraud and tax evasion.  Former accounts payable manager Adcock received 15 months in prison and was ordered to make restitution of $246,830.  McFerrin, former director of corporate finance was sentenced to 33 months in prison on the same charges and ordered to pay $662,105 in restitution.  The two women were long-term employees of Columbus Rhttps://klasing-associates.com/question/how-to-survive-audit-when-cheated-on-return-being-audited/egional Health and netted a total of $908,935 during their tenure.

Records show that Adcock, employed for 19 years and serving as accounts payable manager for 12 years, misused Columbus Bank & Trust Visa credit cards issued to employees for business purposes.  She used the credit cards for a variety of unauthorized purchases, adding up to hundreds of thousands of dollars in charges.  McFerrin, employed by Columbus Regional Health for 23 years, used a series of accounting techniques to conceal unauthorized activity on the CB&T cards.  She was able to use a coding scheme to make the unauthorized purchases appear as legitimate business expenses.

During Adcock and McFerrin’s employment, Columbus Regional Health switched from the Columbus Bank & Trust Visa cards to BBVA Compass.  After the change, the old cards were no longer monitored and employees were required to turn in their old cards before receiving a BBVA card.  McFerrin and Adcock decided to keep their cards and continue to use them for unauthorized expenses.  Their activities remained concealed because it was Adcock’s job to review and approve the credit card statements.

McFerrin also filed a fraudulent income tax return in 2013 which substantially underreported her income, and thus, illegally reduced her tax liability.  Adcock also filed a fraudulent income tax return the same year.  As evidenced by the sentencing these women received, filing a fraudulent tax return is a serious crime that could land a taxpayer in severe trouble.  If you are concerned that you may have purposefully failed to be compliant on your return, contact an experienced criminal tax defense attorney.  The Tax Law Offices of David W. Klasing can deliver strategic guidance and aggressive advocacy on a broad range of California, Federal and International Tax Matters.  To schedule a consultation with one our Tax Attorneys, CPAs or EAs, call (800)-681-1295 today or contact us online.

Why Should I Be Worried About Committing Tax Fraud in California?

Tax fraud is not a crime to be taken lightly.  Under-reporting your income, claiming false deductions, and failing to file all have serious repercussions for society.  Taxes are used to support common resources, such as police, firefighters and other government workers.  Tax money also helps to ensure that public roads are well-maintained and provides much-needed funding for government programs, schools and libraries.  Paying taxes is considered a civic duty, and failing to do so violates the law.

The IRS and Department of Justice are actively seeking those who have purposely strayed from tax compliance.  Since taxes are the primary source of funding for the federal government, the IRS has a huge interest in finding and prosecuting those who are contributing to the overall tax gap.  New technologies are being implemented all the time to collect data in ways that taxpayers are likely not even aware of.  As discussed in a recent blog “The IRS Might Be Cyberstalking You”, the IRS has begun mining data from the social media accounts of taxpayers and using predictive algorithms to track down delinquent taxpayers.

Failing to accurately report income on a tax return is a crime and is taken very seriously by the IRS and the Department of Justice and the state of California.  Tax fraud comes in many forms that need not be intentional to be prosecuted.  A conviction for tax fraud can carry a sentence of up to five years in a federal prison.  Additionally, those convicted or pleading guilty to filing a fraudulent tax return are typically sentenced to an additional term of supervised release after their time served in a prison.  Even a single count of tax fraud carries a fine of up to $250,000, not including back taxes, penalties, and interest.  If you have intentionally committed tax fraud, or are worried that you may have been otherwise noncompliant, it is in your best interest to contact an experienced tax attorney to discuss your options for tax defense if being audited or investigated, or a domestic voluntary disclosure and tax relief, if you are not, but are losing sleep over your prior fraudulent tax filings.

Contact an Experienced California Tax Defense Attorney Today

Tax law is often a challenge for Americans to understand.  With frequently changing rules, it can be difficult to know if you are being fully compliant.  The experienced and dedicated Tax Attorneys, CPAs and EAs of the Tax Law Offices of David W. Klasing have several years of sophisticated experience working with domestic and foreign taxpayers on a wide variety of international and domestic tax topics. Whether you are facing an audit, criminal tax investigation, or simply need help with how to file, our advocates are here to resolve your matter efficiently and successfully. Call the Tax Law Offices of David W. Klasing at (800) 681-1295 today, or contact us online for a reduced-rate consultation.

 

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