Kansas City Business Owner Convicted of Tax Crime
Kansas City, MO – In a federal trial that began on April 1, 2019, Barrett Prelogar, 48, a former business owner of Winntech Digital Systems, Inc., was convicted of corruptly endeavoring to impede the due administration of the internal revenue laws.
Prelogar’s conviction stems from his failure to pay over to the government the payroll taxes withheld from Winntech employees’ paychecks in 2002 and 2003. He also obstructed the TRS’s collection process of the Trust Fund Recovery Penalty, which had been assessed against him personally for the unpaid trust fund taxes of Winntech.
Additionally, Prelogar obstructed the IRS’s collection of the income taxes he owed for 2008. He filed his 2008 tax return on October 28, 2009, reporting over $500,000 in gross income and a tax due and owing of $120,103. However, he made no payments on his 2008 tax debt, instead using the money to pay for personal expenses, including a house at the Lake of the Ozarks, a house near the Plaza in Kansas City, MO, a house in Leawood, KS, a Porsche, a Jeep, and a boat.
Prelogar engaged in several strategies to obstruct the collection of taxes and penalties he owed to the government, including using corporate funds to pay his personal expenses, structuring cash withdrawals from Winntech’s bank account to avoid federal bank reporting requirements, and cashing his payroll checks from his wife’s company, Bare Skull Innovation, LLC, rather than placing the money into a personal bank account.
The jury in the U.S. District Court in Kansas City, MO, deliberated for approximately 3 1/2 hours before returning the guilty verdict to U.S. District Judge Stephen R. Bough.
Under federal statutes, Prelogar is subject to a sentence of up to three years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office. The case is being prosecuted by Assistant U.S. Attorney Paul S. Becker and Trial Attorney David Zisserson of the U.S. Tax Division. It was investigated by IRS-Criminal Investigation.
Key Facts
- State: Missouri
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime