James E. Coleman, Jr. Tax Evasion, New Mexico 2016

ALBUQUERQUE, N.M. – In a shocking turn of events, James E. Coleman Jr., the former president and owner of Sneakerz Inc., a corporation that operated "Sneakerz Sports Bar" in Albuquerque, N.M., has been sentenced to 18 months in prison for federal tax evasion. This is a stark reminder that those who cheat the system will be held accountable.

Coleman, 59, was sentenced in federal court to 18 months of imprisonment to be followed by three years of supervised release. In addition to his prison sentence, Coleman was also ordered to pay $1,045,939 in restitution to the IRS. This staggering amount is a clear indication of the severity of Coleman’s crimes.

Coleman was charged in November 2014 with tax evasion and subscribing false tax returns charges. The indictment alleged that Coleman evaded a total of $166,320 in federal corporate taxes in calendar years 2008 and 2009 by filing false tax returns that underrepresented his corporation’s taxable income. Specifically, Count 1 charged Coleman with evading $90,661 in federal taxes by falsely claiming that his corporation had $621,064 in taxable income in calendar year 2008, despite knowing that the corporation had $886,128 in taxable income for that year.

Count 2 charged him with evading $75,659 in federal taxes by falsely claiming that his corporation had $731,581 in taxable income in calendar year 2009, despite knowing that the corporation had $932,235 in taxable income for that year. Counts 3 and 4 charged Coleman with filing individual tax returns for calendar years 2008 and 2009 that falsely reported that Coleman received no dividend income and no business income during those two calendar years.

On June 23, 2016, Coleman pled guilty to Count 1 of the indictment, admitting to evading a total of $1,045,939 in federal corporate and personal taxes between calendar years 2002 and 2009. In his plea agreement, Coleman acknowledged underrepresenting Sneakerz’s gross receipts to the IRS with the intention of evading his corporate tax liability. He also admitted to falsely underrepresenting the income he derived from Sneakerz on his personal tax returns.

The Albuquerque office of IRS Criminal Investigation investigated the case, which was prosecuted by Assistant U.S. Attorney Jeremy Peña. This case serves as a warning to all individuals and corporations who engage in tax evasion. The IRS will continue to work tirelessly to uncover and prosecute those who cheat the system.

Coleman’s sentence is a testament to the importance of holding individuals accountable for their actions. His 18-month prison sentence and $1,045,939 restitution order will undoubtedly serve as a deterrent to others who may be considering similar crimes.