October 16, 09

NEWS / Ohio Home Builder Charged with Filing False Tax Returns

WASHINGTON - Roy W. Bradford of Ludlow Falls, Ohio, was indicted on two counts of filing a false tax return and one count of corruptly endeavoring to impede the Internal Revenue Service (IRS), the Justice Department and IRS announced today.

According to the indictment, Bradford, who owned and operated Bradford Builders which built wooden frames for residential construction, filed false tax returns for 2003 and 2004 that inflated his labor costs and understated his income. As a result, Bradford allegedly claimed less net profit and taxable income than he actually earned.

According to the indictment, Bradford corruptly endeavored to impede the IRS in several ways. Bradford filed Forms 1099 informational tax returns which inflated the amounts that he actually paid his workers. In addition, Bradford filed Forms 1099 which contained tax identification numbers for the workers that he knew were false. Bradford also sometimes paid the girlfriends or wives of his workers because of each worker’s immigration status and then filed false Forms 1099 stating that the girlfriends or wives worked for him. Additionally, during the civil audit and criminal investigation, Bradford provided documents and made statements to the IRS that he knew were false.

An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in U.S. district court.

If convicted, Bradford faces a maximum sentence of nine years in prison and a $750,000 fine.

The case is being prosecuted by Justice Department Tax Division Trial Attorney Jerrod Patterson and Assistant U.S. Attorney Vipal Patel. The case was investigation by IRS-Criminal Investigation.

http://www.usdoj.gov/opa/pr/2009/October/09-tax-1111.html

Tags: criminal investigation, document,