Pair charged with over $ 1 million in tax evasion at Sgt. Bluff business | Crime and courts

0

SERGEANT BLUFF – Construction company owner and archivist Sergeant Bluff both face federal charges for evading more than $ 1 million in taxes over years of filing fraudulent tax documents , falsification of financial information and concealment of business transactions through a second company.

Kevin Alexander, president of K&L Construction Inc., was arrested Monday, and his daughter, Jenna Alexander-Wilson, the company’s records keeper and office manager, was arrested Tuesday. Both are charged with single counts of conspiracy to defraud the United States and tax evasion. Alexander-Wilson also faces four counts of employment tax evasion.

The pair appeared in Sioux City U.S. District Court on Tuesday, where they pleaded not guilty to all counts and were released on bail. A trial was scheduled for January 3.

A grand jury indictment on Tuesday unveiled the detailed steps Alexander and his daughter have taken to avoid paying employment taxes since at least 2014, when the IRS launched a fundraising activity against K&L for assess and collect overdue employment taxes. In 2017, the IRS issued a tax levy to collect $ 1.02 million in unpaid taxes, but received no part of the money owed.

During the IRS’s collection efforts, Alexander and Alexander-Wilson failed to report multiple assets and submitted incorrect information, including changed bank statements and checks in which account and routing numbers had been changed.

People also read …

In October 2016, the Iowa Department of Transportation disqualified K&L from bidding on all departmental contracts because the company, which derived a significant portion of its revenue from federal construction contracts, d State and county, had filed fraudulent invoices for building materials. Alexander-Wilson pleaded guilty in federal court to making false statements and, in January 2018, was fined $ 34,432 and placed on probation.

Following his conviction, the Federal Highway Administration banned Alexander, Alexander-Wilson, and K&L from entering into federal contracts.

Meanwhile, the indictment alleges that Alexander sold Circle A Construction, a company he formed in 2010, to someone named in court documents as Insider 2 for around $ 1,000. Insider 2 was listed as chairman and sole shareholder, but kept full-time employment elsewhere. Alexander remained the true owner of Circle A, according to the indictment.

In May 2017, Alexander-Wilson began using Danielle Cutler’s name to conceal her role in Circle A in order to conduct business on behalf of K&L through Circle A, according to the indictment. With Alexander-Wilson using the false name, Circle A continued to bid on FHA-funded road projects, submitting fake liability insurance certificates to contractors in an attempt to find jobs.

From 2017 to the present, Alexander and Alexander-Wilson have attempted to conduct K&L operations through Circle A in order to conceal IRS income and assets, in part by submitting fraudulent bank statements to the IRS to hide the K & L’s continued non-compliance with its auction suspension. on road projects, according to the indictment.

They did not disclose the transfer of 49 trucks and trailers from K&L to Circle A, withheld money from Circle A workers for tax purposes, but never paid the money to the IRS and held fraudulent accounting records. In some cases, Alexander-Wilson has removed paychecks from K & L’s ledger in order to conceal the true tax liability of the business, and then filed false forms with the IRS.

For the 2015-18 tax years, according to the indictment, Alexander-Wilson filed false returns in an attempt to evade the assessment of federal income taxes and payroll taxes, giving the feeling that the business owed less than it actually did and resulting in IRS tax losses of $ 466,344.

Bradley Hansen, a federal public defender in Des Moines who represents Alexander-Wilson, declined to comment. Alexander’s lawyer Holly Logan of Des Moines did not immediately return a message from the Journal.


Source link

Share.

Comments are closed.