Pennsylvania-based Thayer Power and Communications has historically provided services that ranged from planning, engineering, and implementing power and communication lines but it is unlikely that the corporation’s top brass could have ever imagined that one of their very own would engineer a plan of his own to steal money from the company.
Former Thayer Power and Communications CFO Brian M. Quimby was sentenced last week to serve over two years in a federal prison. The sentence came after Quimby pled guilty in 2014 to charges that involved fraud while working for Thayer as well as his failing to file a 2007 tax return and subsequently lying to the IRS about it. The fraudulent activity conducted by Mr. Quimby involved check kiting, a practice that involves writing one or a series of checks that are drawn on an account that has insufficient funds in order to inflate the value of another checking account. Kiting takes advantage of the “float”, a term used to describe the time between a check being issued and the money actually being transferred out of the account on which the check was drawn upon. If executed as the practice has been engineered, an accountholder is able to temporarily duplicate money in the banking system. According the court documents, Quimby not only defrauded Thayer, but his activity also siphoned money from Key Bank.
In addition to the check kiting activity, Quimby also pled guilty to tax evasion charges that related to his intentional failure to file income taxes for the 2007 tax year. In addition to not filing his taxes, he was alleged to have lied to the IRS during their investigation, stating that he had filed his tax returns and that they must have been lost in transit or processing.
Even though Mr. Quimby moved to Florida after the alleged activity, the relocation didn’t slow down the criminal investigation and eventual charges that he would eventually face. Senior United States District Judge Maurice B. Cohill handed down Quimby’s sentence last Thursday and said that the defendant’s false statements that were made to the IRS during their investigation particularly troubled him. Quimby will serve 27 months in federal prison and will also be required to pay restitution to Key Bank and Thayer Power and Communications in the amount of $202,789 and to the IRS in the amount of $87,840.
Even though Quimby probably doesn’t feel like his 27-month sentence is a gift, the potential sentence could have been much worse. Even though Quimby was only charged with two counts, the possible sentence that could be imposed by law was 35 years in a federal prison. The reality of harsh sentences for tax and other financial crimes evidences a great need for taxpayers to retain an experienced tax attorney at the first sign of trouble with the IRS or any other governmental agency that investigates tax or financial crimes.
IRS auditors and investigators are like trained bloodhounds and will pounce whenever they have the slightest inkling that something doesn’t seem right. Although taxpayers often feel that they can talk their way out of an audit or an investigation, one wrong statement can change the entire dynamic of an investigation and may even prompt the attention of the IRS Criminal Investigation Division or the Department of Justice the become involved.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing are committed to maintaining your physical and financial freedom. We have years of comprehensive experience representing taxpayers who are facing an audit, investigation, and even civil or criminal litigation. Don’t go into a battle with the federal government alone. Let the Tax Law Offices of David W. Klasing zealously advocate for your interests. Contact the Tax Law Offices of David W. Klasing today or call (800) 681-1295 for a reduced-rate consultation.