KANSAS CITY, Mo. – A hard-nosed Independence, Mo., attorney has been locked up for 21 months after being caught trying to swindle the IRS out of nearly $795,000. John C. Carnes, 70, pleaded guilty on Nov. 25, 2024, to charges of tax evasion and was sentenced by U.S. District Judge Howard F. Sachs today.
Carnes’s crime was no mere slush fund; he admitted to siphoning off $444,527 from his attorney trust account for personal gain, including cash to fuel a gambling habit. The judge also ordered him to cough up $794,540 in restitution. Carnes’s shenanigans cost the IRS over $618,949 in tax years 2012 through 2018, plus an additional $175,590 from earlier years.
It’s a stunning fall from grace for Carnes, whose lawyer trust accounts were supposed to be a sacred trust, holding funds for clients and third parties. Instead, he funneled his earnings into personal expenses, effectively robbing the IRS blind. The judge noted that Carnes used the money to pay off his own bills and indulge in vices.
The investigation was a long-running battle of wills between the IRS and Carnes, who has been under scrutiny since 2009. Assistant U.S. Attorneys Rudolph R. Rhodes IV and Paul S. Becker handled the prosecution with tenacity, while IRS-Criminal Investigation kept the heat on.
This case serves as a stark reminder of the consequences for those who abuse their positions of trust to enrich themselves at the expense of the public coffers.
RELATED: Timeshare Hustler Hit With 23 Months for Tax Dodge
RELATED: Timeshare Hustler Gets 23 Months for Tax Dodge
Related Federal Cases
- Mo. Salesman Gets 23 Months for Tax Dodge · Missouri
- Semere Tsehaye Convicted of Tax Evasion on $1.5M Hidden Income · Illinois
- Janis Ann Edwards Pleads Guilty to $1M Tax Evasion Scheme · Oklahoma
- Gwendolyn Hampton Indicted in $376K Tax Evasion Scheme · Missouri
- Columbia Tax Preparer Keithley Gets 2 Years for $291K Fraud · Missouri
Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption|White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News