FORT WORTH, Texas (AP) – An attorney who ran dozens of nursing homes in Texas, Oklahoma, Iowa, Kansas and Virginia pleaded guilty Wednesday in a federal tax-evasion case involving at least $34 million in payroll taxes.
Gary R. Trebert, 57, pleaded guilty to conspiracy to defraud the government by obstructing and impeding lawful government functions of the Internal Revenue Service and the Department of Health and Human Services, tax evasion and aiding and abetting, said U.S. Attorney Richard B. Roper.
As part of the plea agreement, prosecutors will recommend an eight-year federal prison term when he is sentenced in July, Roper said. He faced a maximum sentence of 10 years.
Larry Gordon May pleaded guilty to his role in the conspiracy in October and is to be sentenced in April.
The trial for Stephen Michael Ewing, also known as Stephen Michaels, is set for Monday.
The men used sham payroll companies with foreign addresses to evade taxes, according to court documents.
Trebert's attorney, Charles Blau of Dallas, said the evidence collected by prosecutors would have made trial difficult for his client, the Fort Worth Star-Telegram reported in Wednesday online editions. Blau said he hoped Trebert would testify against Ewing, whose attorney could not be reached for comment.
Copyright 2008 The Associated Press.