Austin, Texas – In a shocking turn of events, John L. Petrone, a local business owner, has been sentenced to 37 months in prison for evading income tax on his kratom sales. Petrone, who operated a business selling herbal extracts and related products, left a trail of deceit in his wake, causing a tax loss of over $529,000 to the IRS.
According to court documents, Petrone failed to file individual income tax returns for five consecutive years, despite earning hundreds of thousands of dollars from his business. The brazen businessman went to great lengths to evade his taxes, opting not to withhold federal taxes from his paychecks, operating the business under different names, and dealing in cash to avoid detection.
Petrone’s actions were not limited to evading his own taxes. He also failed to pay his business’s employment taxes, further exacerbating the tax loss. The IRS Criminal Investigation team worked tirelessly to uncover the truth behind Petrone’s suspicious financial activities, and their efforts ultimately led to his downfall.
Acting Deputy Assistant Attorney General Stuart M. Goldberg praised the team’s efforts, stating, ‘The Tax Division is committed to holding individuals accountable for their actions, including those who engage in complex schemes to evade their tax obligations.’
Assistant Chief David Zisserson and Trial Attorney Andres Chinchilla of the Tax Division prosecuted the case, with assistance and support from the U.S. Attorney’s Office for the Western District of Texas. The sentence is a stern reminder that tax evasion will not be tolerated, and those who engage in such activities will face severe consequences.
Petrone’s sentence includes 37 months in prison, three years of supervised release, and a restitution order of $529,551 to the United States. His actions serve as a cautionary tale for businesses and individuals alike, highlighting the importance of complying with tax laws and regulations.
The case is a testament to the IRS’s commitment to protecting the integrity of the tax system and ensuring that those who engage in tax evasion are held accountable for their actions.
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Key Facts
- State: Texas
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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