Apr 23rd 2012
Troy A. Beam of Shippensburg, Pennsylvania, was sentenced April 10, 2012, to seventy-four months in prison by US District Judge Christopher C. Conner, the Justice Department, and the IRS. On May 4, 2011, a federal jury in the Middle District of Pennsylvania convicted Beam of tax evasion, obstructing and impeding the due administration of the Internal Revenue laws, and willful failure to file federal income tax returns.
According to evidence introduced at trial, Beam, a former CPA and state auditor in the Pennsylvania Auditor General's Office, earned substantial sums of income from 1992 to the date of the indictment while operating a home construction business, known as Sunbeam Builders. He also owned and operated two real estate businesses, known as Latrobe Leasing and Goldstar Property Management, that purchased, rented, and sold real estate. Despite earning substantial income from these businesses, as well as other activities, Beam failed to file any federal income tax returns since April 1996 when he filed his 1995 tax return reporting a loss. In April 1996, Beam also filed false amended federal income tax returns for 1992, 1993, and 1994, seeking tax refunds for taxes he previously had paid for those years.
The evidence at trial proved that from 1999 to 2007, Beam earned more than $10.3 million in gross income from his various home construction and rental property businesses. Beam obstructed the IRS in its attempt to calculate and collect his taxes by using numerous sham trusts and other entities, including North Star Investment Holdings Ltd., to hide his income and assets. He used North Star to set up a bank account in the Cayman Islands, into which he deposited nearly $3 million of income derived from his construction business.
"Convictions such as this send a loud and clear message that those who defy our nation's tax laws will be investigated and prosecuted to the fullest extent of the law," said Kathryn M. Keneally, assistant attorney general of the Justice Department's Tax Division.
"The evidence showed beyond a reasonable doubt that Troy Beam is a consummate fraud and hypocrite who evaded his responsibilities as a citizen while participating in a charade to deceive the government, other citizens, and himself for his own selfish ends," said Peter J. Smith, US attorney for the Middle District of Pennsylvania.
"The use of abusive trust schemes and sham entities intended to conceal income from the IRS isn't tax planning; its criminal activity," said Rick A. Raven, acting chief, IRS - Criminal Investigation. "As the tax filing season comes to a close, it's more important than ever that the American people feel confident that everyone is paying the taxes they owe."
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Source: US Department of Justice