A Houston man has been ordered to federal prison for evading payment of his income taxes and committing bankruptcy fraud.
David Felt, 65, pleaded guilty to the charges on May 9, and U.S. District Judge Andrew Hanen sentenced him to 18 months in federal prison. Felt was also ordered to pay $250,000 in restitution to the IRS.
According to the plea agreement, Felt admitted to willfully evading payment of income taxes he owed for 1986-87 and 1994-98. He also admitted to receiving over $4 million in income during 2004-14, none of which was paid towards the owed taxes.
Felt falsely stated that he had no significant assets or income and had no ownership in any businesses. However, as part of his plea, he admitted that he acted as a disbursing agent for a debtor in a bankruptcy case and filed monthly accounting reports containing payments to insiders, including himself, from the estate of the debtor.
The investigation into Felt’s crimes was conducted by the IRS – Criminal Investigation and the FBI, with the assistance of the U.S. Trustee’s Office. Assistant U.S. Attorneys Quincy L. Ollison and Charles J. Escher prosecuted the case.
Felt was permitted to remain on bond and will voluntarily surrender to a U.S. Bureau of Prisons facility at a date to be determined. His crimes have left a trail of financial devastation, and his sentencing serves as a reminder of the consequences of tax evasion and bankruptcy fraud.
Felt’s case is a stark reminder of the importance of honesty and transparency in financial dealings. His crimes have caused significant harm to the IRS and the public, and his sentencing is a step towards justice.
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Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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