SCRANTON – A shocking case of corporate greed has come to light in Scranton, Pennsylvania, as Al T. Hughes, age 60, of Scranton, pleaded guilty to tax evasion on February 7, 2019. Hughes, the director of several area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel, admitted to diverting approximately $892,000 in corporate receipts to his personal benefit.
According to United States Attorney, David J. Freed, Hughes failed to report the diverted receipts as income on his federal tax returns, resulting in a tax loss to the United States of approximately $231,000. The investigation revealed that Hughes began diverting corporate receipts in 2009 and continued through 2014, cashing hundreds of customer checks at various financial institutions, including a check cashing service in Scranton.
The investigation was conducted by the Criminal Investigation Division of the Internal Revenue Service – Scranton Office. Assistant United States Attorney Michelle Olshefski is prosecuting the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. In this case, the maximum penalty under federal law for the crime of tax evasion is 5 years in prison, a term of supervised release following imprisonment, and a fine.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
The case serves as a reminder of the importance of honest business practices and the severe consequences of tax evasion. The public can expect to see a more detailed breakdown of the case and its implications in future reports.
Al T. Hughes, age 60, of Scranton, Pennsylvania, pleaded guilty to tax evasion on February 7, 2019, diverting approximately $892,000 in corporate receipts to his personal benefit and failing to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,000.
Defendant Name: Al T. Hughes
Criminal Charges: Tax Evasion
City and State: Scranton, Pennsylvania
Exact Date: February 7, 2019
Sentence or Outcome: Plea deal, awaiting sentencing
Dollar Amounts: $892,000 in corporate receipts diverted, $231,000 in tax loss
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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