Hercules Office Director Admits to $122K Tax Dodge

SAN FRANCISCO – Christine Hill, 54, of Vallejo, California, confessed today to a calculated scheme to cheat the U.S. government out of tens of thousands of dollars in taxes. Hill, Director of Operations at John Compagno, MD, Inc. in Hercules, admitted to knowingly filing a fraudulent 2010 U.S. Individual Income Tax Return, according to a statement from the U.S. Attorney’s Office.

The feds say Hill, responsible for payroll at the medical office, was well aware of the tax implications of bonus payments. She dutifully processed bonus checks for herself and employees, withholding federal taxes and reporting them on W-2 forms. But behind the scenes, Hill was lining her own pockets with additional, unreported year-end bonuses dating back to at least 2003. These payments, never processed through payroll, never saw a dime in taxes.

The scheme didn’t stop with Hill’s personal bonuses. Her spouse also benefited, receiving payments from John Compagno, MD, Inc. for repair and construction work between 2004 and 2011. Crucially, no 1099 forms were issued for these services, effectively shielding the income from IRS scrutiny. Over the nine-year period from 2003 to 2011, Hill concealed a total of $122,391 in income – bonuses and payments to her spouse – resulting in an additional tax liability of $35,566.

Hill was initially charged with tax evasion, in violation of 26 U.S.C. § 7201, on March 1, 2017. She pleaded guilty to the single-count information before U.S. District Judge Richard Seeborg. While facing a maximum sentence of five years in prison and a $250,000 fine, the actual sentence will be determined by Judge Seeborg after considering U.S. Sentencing Guidelines and federal sentencing statutes.

Assistant U.S. Attorney Thomas Moore is leading the prosecution. The investigation, spearheaded by the Internal Revenue Service, Criminal Investigation, revealed the intricate web of unreported income. The case serves as a stark reminder that even those in positions of responsibility aren’t above the law when it comes to paying their fair share.

A sentencing hearing is scheduled for June 20, 2017. The Grimy Times will be there to report on the outcome. This case highlights the IRS’s ongoing commitment to cracking down on tax evasion and holding accountable those who attempt to defraud the system.