David Lee Keithley, Tax Evasion Scheme, MO 2024

David Lee Keithley, 63, of Columbia, Mo., was sentenced to two years in federal prison without parole for orchestrating a tax fraud scheme that bilked his clients and the government out of nearly $300,000. U.S. District Judge Brian C. Wimes handed down the sentence, ordering Keithley to pay $291,041 in restitution. He must surrender on March 10, 2017, to begin serving his term.

Keithley, owner of Keithley and Associates, exploited his role as a trusted tax preparer, accepting client funds meant for tax deposits and pocketing the money instead. Between 2009 and 2013, he failed to file federal income tax returns for himself while simultaneously misappropriating $120,354 from clients’ payments. When clients were hit with IRS notices for unpaid taxes, Keithley lied, promising to fix the issues — then did nothing.

On August 2, 2016, Keithley pleaded guilty to one count of assisting in the filing of a false income tax return and one count of failing to file his own federal income tax return. The unpaid federal taxes he owes for 2009 through 2013 total $148,423. On top of that, he owes Missouri $22,264 in back state income taxes — bringing the total loss from his crimes to $291,041.

Court documents reveal a long trail of deceit. Keithley has three prior state felony convictions for theft and fraud, including stealing from business clients and diverting funds meant for tax payments. His criminal pattern wasn’t isolated — it was systemic, preying on trust and financial vulnerability.

The scheme unraveled thanks to an investigation by IRS-Criminal Investigation and the Missouri Department of Revenue. Assistant U.S. Attorney Lawrence E. Miller prosecuted the case, painting a clear picture of a man who abused his professional position for personal gain while leaving victims to face IRS penalties and audits.

Tammy Dickinson, U.S. Attorney for the Western District of Missouri, emphasized that exploiting clients under the guise of financial help carries serious consequences. “This wasn’t just negligence — it was calculated theft,” she said. “Keithley stole from hardworking people and then dodged his own tax obligations. Justice demands accountability.”