Maryland Man gets 10 Months Prison Sentence in Tax Fraud Case

Who got busted:    Patrick McLaughlin, age 43, of Ocean City, Maryland

Who busted him:

  • Rick A. Raven, Special Agent in Charge, IRS, Criminal Investigation
  • Rod J. Rosenstein, United States Attorney for the District of Maryland
  • Mark W. Crooks and Harry M. Gruber, Assistant United States Attorneys
  • Catherine C. Blake, U.S. District Judge

What did he do:

  • Failure to file corporate tax returns for tax years 2003-2009
  • Failure to pay corporate taxes from 2007-2009
  • Failure to pay employment taxes from 2006-2008 (total $135,348)
  • Failure to file and pay individual income taxes from 2005-2009
  • Grand total: $296,701

What are the consequences:

  • 10 months in prison
  • 12 months of supervised release

Mr. McLaughlin did plead guilty to the above charges.  I find it interesting that the prison sentence was not also accompanied by some kind of restitution.  Usually the tax evader is also ordered to pay back what is owed.  Maybe it was just left out of the press release.

These are difficult times that we live in, especially for business owners who experience the same cash-flow problems as others, but often on a bigger scale.  Some are tempted to cut corners on their taxes, but taking tax relief into their own hands often has tragic results.

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