A Red Oak man was sentenced to federal prison Wednesday relating to a tax evasion charge he had previously pleaded guilty to on Nov. 2.
According to documents filed in U.S. District Court for the Northern District of Texas, Ed Taylor Jr. will serve 52 months in prison. He also was sentenced to three years of supervised release and must pay a $100 mandatory special assessment fee for tax evasion violations.
The incident stems from 2006, when Taylor was an employee at Dillon Gage Inc., according to the court documents. At the time he was earning a salary of $40,990.
From December 2005 through August 2006, according to the documents, Taylor admitted that he devised and executed a scheme to embezzle money from his employer by creating fraudulent purchase invoices and caused checks to be issued in the name of one of his friends and making wire transfers to his friend’s bank account.
“Taylor acknowledges that once the checks or wire transfers were deposited into (the friend’s) account, he directed (the friend) to write him checks from the proceeds of the scheme. Taylor acknowledges that he directed (the friend) to make the majority of those checks payable to Taylor’s business bank account, The Know Group LLC,” according to the documents.
“Taylor acknowledges that by funneling money through (the friend’s) bank account and The Know Group bank account, he was attempting to conceal the true source of the income and prevent authorities from making a true assessment of his income. Taylor agrees that he received approximately $654,300 in proceeds of the fraudulent scheme.”
According to the documents, Taylor admitted that he created about 11 fraudulent invoices that resulted in $902,329.
He also admitted that he received taxable income of $695,290 in 2006 and that he owed $214,155 in federal income tax, according to the documents, which indicate Taylor did not file a tax return or pay the tax due in 2006.
In accepting the plea agreement, Taylor waived his rights to appeal except under specified criteria.
IRS Criminal Investigation was the investigating agency in the case, which was prosecuted by the U.S. Attorney’s Office.
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