June 22, 11

NEWS / Michael Jacksons Former General Manager Pleads Guilty to Tax Charges in Washington, D.C., Court

WASHINGTON - Raymone Bain, a public relations specialist and the former general manager of the late pop star Michael Jackson, pleaded guilty today in federal court in Washington, D.C., to charges that she failed to file federal and District of Columbia income tax returns, the Justice Department, Internal Revenue Service (IRS) and the District of Columbia Office of Tax and Revenue (OTR) announced.



Bain, a resident of Washington, D.C., pleaded guilty to two counts of failure to file federal income tax returns (Forms 1040) and District of Columbia income tax returns (Forms D-40). U.S. Magistrate Alan Kay scheduled sentencing for Aug. 31, 2011. The federal criminal violation carries a maximum penalty of 12 months in prison and a $100,000 fine. The District of Columbia criminal violation carries a maximum penalty of six months in prison and $5,000 fine.



According to the evidence presented in court, Bain worked in the sports and entertainment industry in the District of Columbia and founded her public relations firm, Davis, Bain & Associates. Beginning in 2006, Bain became personal general manager for the performer Michael Jackson and president of the Michael Jackson Company. In that capacity, she was responsible for daily operations of the Michael Jackson Company, including financial, public relations and marketing tasks. Bain was compensated for her services.



Despite earning substantial income, Bain knowingly failed to file her federal her District of Columbia income tax returns, and she failed to pay income taxes owed during 2006 through 2008. According to the plea documents filed in court today, the tax loss is between $200,000 and $400,000.



Ronald C. Machen Jr., U.S. Attorney for the District of Columbia; John DiCicco, Principal Deputy Assistant Attorney General for the Justice Department’s Tax Division; Rebecca A. Sparkman, Special Agent in Charge for the IRS-Criminal Investigation; and Stephen M. Cordi, OTR Deputy Chief Financial Officer Cordi praised the efforts of those who worked on the case. Assistant U.S. Attorney Susan Menzer and Department of Justice Trial Attorney Karen E. Kelly are prosecuting the matter.

http://www.justice.gov/opa/pr/2011/June/11-tax-815.html

Tags: criminal investigation, document,