Virginia Business Owners Convicted of Tax Evasion
A jury in the Western District of Virginia has convicted two business owners, Jeffrey and Karen Dalton, of tax evasion and conspiring to structure currency transactions.
The Daltons, who operated Blue Ridge Stainless Inc. out of their home in Hillsville, Virginia, failed to pay taxes, penalties, and interest owed on their personal tax returns from 2009 to 2014. Despite repeated contact from the IRS, they refused to pay their outstanding tax liabilities and used nominees to conceal their ownership of property.
After the IRS levied their personal bank accounts, the Daltons used funds from their business bank account to start a cattle business and pay their children’s wedding expenses. The evidence at trial also proved that they repeatedly withdrew cash from their business bank account in amounts less than $10,000 to evade federal bank-reporting requirements, thereby structuring more than $250,000 in withdrawals.
The Daltons face a statutory maximum sentence of five years in prison on the tax evasion and conspiracy charges. They also face a period of supervised release, restitution, and monetary penalties.
U.S. District Court Judge James P. Jones scheduled sentencing for April 24. The investigation was conducted by special agents of IRS Criminal Investigation, and the case was prosecuted by Trial Attorneys Daniel McGraw and Sean Beaty of the Tax Division.
The Tax Division’s website provides additional information about its enforcement efforts.
The Daltons’ case is a reminder of the consequences of tax evasion and the importance of complying with tax laws. Their actions not only harmed the government but also undermined the integrity of the tax system.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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