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Builder Charged with Tax Obstruction and Government Property Conversion
A former North Carolina builder has been arrested and charged with obstructing the tax laws and converting government property, according to the Justice Department and Internal Revenue Service (IRS). William B. Clayton, a residential builder formerly of Corolla, N.C., was arrested yesterday on charges of tax obstruction and conversion of government property.
Clayton had his initial appearance today before U.S. Magistrate Judge William A. Webb in the Eastern District of North Carolina. He was charged in a two-count indictment returned by a federal grand jury on June 19, 2012, in the Eastern District of North Carolina and unsealed today.
The indictment charges Clayton with one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of knowingly converting and disposing of U.S. government property. According to the indictment, Clayton failed to file federal income tax returns over a six-year period, resulting in the assessment of taxes and penalties and the initiation of collection proceedings by the IRS.
Between May 2007 and August 2010, Clayton took steps to obstruct the IRS’s efforts to collect his unpaid tax liabilities, such as concealing property from the IRS and destroying property owned by the IRS but previously built and owned by Clayton. The indictment alleges that Clayton destroyed an outdoor pool deck and pool house, forcibly removed a guest house from the property and transported it to a non-consenting neighbor’s property, and forcibly removed cabinets, counter tops, a kitchen island, sinks, toilets, and light fixtures in an effort to pay down his tax liabilities.
The IRS scheduled a public auction of Clayton’s former property in an effort to collect his unpaid tax liabilities. However, Clayton committed, or caused the commission of, various acts of destruction and demolition at the Corolla property in the days leading up to the auction, resulting in significant damage to the property and its value.
If convicted, Clayton could face a maximum potential sentence of three years in prison and a fine of $250,000 on the tax obstruction charge, and 10 years in prison and a fine of $250,000 on the conversion of government property charge. The case was investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorney Adam Hulbig of the Justice Department’s Tax Division.
An indictment is merely an accusation. The defendant is presumed innocent unless proven guilty beyond a reasonable doubt.
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Key Facts
- State: North Carolina
- Category: Fraud & Financial Crimes|White Collar Crime
- Source: DOJ Press Release ↗
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