Dr. William Bailey, Tax Evasion, California 2016

Dr. William Bailey, a local physician, convicted of tax evasion

In a federal jury trial, Dr. William Bailey, a 57-year-old physician from San Diego, California, was convicted of eight counts of tax evasion. The charges stem from his failure to pay taxes on income earned between 2004 and 2011.

According to evidence presented at trial, Dr. Bailey earned over $1.1 million in compensation for his services as a physician at two different local clinics. However, he concealed his income by having his paychecks directed to an account in the name of a trust.

In his own testimony, Dr. Bailey admitted that he created the trust himself and signed the name of another person as the creator. As the grantor, sole trustee, and beneficiary of the trust, the income was attributed to Dr. Bailey as an individual.

Dr. Bailey spent the $1.1 million he deposited in the trust account on personal expenses, including the purchase of a home, two cars, a time share, and approximately $400,000 in credit card bills. Despite earning a significant income, Dr. Bailey reported no taxable income on the tax returns he filed.

Evidence presented at trial showed that Dr. Bailey owed a total of $315,000 in unpaid taxes for the period from 2004-2011.

As the conviction shows, the law is clear on the issue of taxable income and who is required to file and pay taxes - there is no gray area on the subject.

Dr. Bailey is scheduled to be sentenced on April 20, 2016, at 9:00 a.m., before U.S. District Judge Cathy A. Bencivengo. He faces a maximum penalty of 5 years of imprisonment and $250,000 fine per count.

**Defendant:** Dr. William Richard Bailey, Age: 57, San Diego, California

**Criminal Charges:** Tax Evasion, Title 26, United States Code, Section 7201 B

**City and State:** San Diego, California

**Date:** January 28, 2016

**Sentence:** Scheduled to be sentenced on April 20, 2016

**Dollar Amounts:** $1.1 million in income, $315,000 in unpaid taxes, $400,000 in credit card bills

Source: https://www.justice.gov/usao-sdca/pr/local-physician-convicted-eight-counts-tax-evasion-after-earning-over-1-million