David Allen Edwards, Wire Fraud Tax Fraud Failure to Pay Taxes, Oklahoma 2014

Muskogee Man Pleads Guilty to Wire Fraud, Tax Fraud, and Failure to Pay $500,000 in Taxes

A 69-year-old man from Muskogee, Oklahoma, has pleaded guilty to wire fraud, tax fraud, and failure to pay $500,000 in taxes. David Allen Edwards, 69, of Muskogee, Oklahoma, appeared in court and pleaded guilty to the charges filed against him.

Edwards was charged with wire fraud, in violation of Title 18, United States Code, Section 1343; tax fraud, in violation of Title 26, United States Code, Section 7206(1); and failure to account for and pay employment taxes owed, in violation of Title 26, United States Code, Section 7202.

The charges against Edwards arose from an investigation by the Muskogee Police Department, the Federal Bureau of Investigation, and the Internal Revenue Service – Criminal Investigation Division.

According to the information filed on July 6, 2015, Edwards devised a scheme to defraud Children’s Clinic, PLLC, obtaining $403,307.09 from the company through false and fraudulent pretenses, representations, and promises.

The investigation revealed that on June 2, 2011, Edwards willfully made and subscribed a false 2010 Form 1040, U.S. Individual Income Tax Return, which contained a false Adjusted Gross Income of $116,610.00, failing to report additional income that was fraudulently obtained from Children’s Clinic, PLLC.

Edwards’ company, Office Medic, Inc., withheld payroll taxes from its employees’ paychecks, including federal income taxes, Medicare, and social security taxes, but failed to send $534,342.09 in withholdings to the Internal Revenue Service.

The Honorable Frank H. Seay, Senior District Judge, accepted Edwards’ guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion. Edwards will remain on bond pending sentencing.

The statutory range of punishment is up to 20 years imprisonment, a fine of up to $250,000.00 or both.

First Assistant United States Attorney Doug Horn represented the United States.

Mandatory Facts:

Defendant/Respondent: David Allen Edwards
Criminal Charges: Wire Fraud, Tax Fraud, Failure to Account for and Pay Employment Taxes Owed
City and State: Muskogee, Oklahoma
Exact Date: January 9, 2014
Sentence or Outcome: Currently on bond pending sentencing
Dollar Amounts: $403,307.09, $116,610.00, $534,342.09

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