Catherine June Floyd, Tax Fraud, Massachusetts 2012
A Massachusetts woman has been sentenced to 5 years in prison for her role in a tax fraud scheme that brought in millions of dollars in unreported wages and compensation.
Catherine June Floyd, 60, was sentenced by U.S. District Judge F. Dennis Saylor in Worcester, Massachusetts, on April 2, 2012.
Floyd and her co-conspirators, William Scott Dion and Charles Adams, were convicted of conspiring to defraud the United States and obstructing the Internal Revenue Service (IRS).
According to the evidence presented at trial, Floyd and Dion promoted and operated an "underground warehouse banking" scheme, which helped subscribers conceal income and assets from the IRS.
The scheme, which operated under three different names, Your Virtual Office, Office Services, and Calico Management, brought in over $28 million in deposits from subscribers.
Floyd was also found to have used an "under the table" payroll scheme to pay employees without properly accounting for, withholding, and paying over to the IRS the payroll taxes required by law.
The scheme, which operated under three different names, Contract America, Talent Management, and New Way Enterprises, brought in approximately $2.5 million in unreported wages and compensation.
Floyd was ordered to pay $3 million in restitution for her role in the scheme.
Her co-conspirators, Dion and Adams, were also sentenced for their roles in the scheme. Dion was sentenced to 84 months in prison and ordered to pay $3 million in restitution, while Adams was separately convicted of tax evasion.
The case was investigated by special agents of IRS - Criminal Investigation and prosecuted by Tax Division Assistant Chief John N. Kane, former Tax Division Trial Attorney Jeffrey Shih, and Assistant U.S. Attorney Victor A. Wild.
Catherine June Floyd, Charles Adams, and William Scott Dion were convicted of the following crimes:
Conspiracy to defraud the United States
Obstruction of the Internal Revenue Service (IRS)
Catherine June Floyd was sentenced to 5 years in prison on April 2, 2012, and ordered to pay $3 million in restitution.
Defendant/respondent: Catherine June Floyd
City and state: Worcester, Massachusetts
Exact date: April 2, 2012
Sentence/outcome: 5 years in prison, $3 million restitution
Dollar amounts: $28 million, $2.5 million, $3 million
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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