GALAX, VA – Jones Keith Andrews, 62, of Galax, Virginia, is headed to federal prison after being sentenced to 24 months for a calculated scheme to defraud the IRS and a brazen lie told under oath during bankruptcy court. The case, prosecuted by the U.S. Attorney’s Office, reveals a years-long effort to avoid paying taxes on his farming operation, Andrews Farming.
Between 2009 and March 2015, Andrews and accomplices systematically paid employees a dual wage – a portion by legitimate paycheck, and the rest in untraceable cash. This allowed Andrews Farming to drastically underreport wages on IRS Forms 941 and W2, forms submitted to the government to calculate and remit payroll taxes. Over $1 million in cash was generated through the cashing of both personal and company checks, effectively hiding income from the IRS.
The scheme wasn’t just about avoiding current tax obligations. Andrews doubled down on deception during a May 5, 2016, bankruptcy hearing. He falsely claimed Andrews Farming suffered $1.3 million in losses due to the alleged embezzlement of employee Robert Donald Morgan, III. Federal investigators quickly determined this was a fabrication; the “embezzled” funds were, in reality, the very cash wages used to evade taxes. Andrews knowingly perjured himself to shield his financial misdeeds.
This wasn’t a solo operation. Robert Donald “Donnie” Morgan previously pleaded guilty for his role in the criminal activity and was sentenced to six months in prison on March 29, 2016. While Morgan received a lighter sentence, Andrews bore the brunt of the legal consequences, ordered to pay $609,604 in restitution to the Internal Revenue Service.
The investigation was a joint effort between the Internal Revenue Service – Criminal Investigation and the U.S. Secret Service, with valuable forensic support provided by the Blacksburg, Virginia, Police Department. Assistant U.S. Attorney Randy Ramseyer led the prosecution, securing convictions on one count of conspiracy to defraud the United States, 17 counts of failure to pay or collect tax, and one count of bankruptcy fraud against Andrews.
The sentencing of Andrews serves as a stark warning: attempts to evade taxes and obstruct justice will be met with federal prosecution. The case highlights the Secret Service’s commitment to investigating financial crimes and holding those who attempt to defraud the government accountable, even in rural communities like Carroll County, Virginia. This wasn’t just about the money; it was about a calculated attempt to undermine the integrity of the tax system.
Related Federal Cases
- Willie C. Grant, ID Theft and Tax Refund Fraud, Macon GA, 2008 · Pennsylvania
- Mickael C. Jones, VA Benefits Fraud, Bowling Green OH, 2023 · Virginia
- Mickael C. Jones, VA Fraud, Bowling Green OH, 2023 · Virginia
- Christopher Guilford, Tax Refund Scheme, Sacramento CA, 2025 · Virginia
- Jeffrey Phares, Cemetery Fraud, West Virginia, 2023 · Virginia
Key Facts
- Agency: U.S. Secret Service
- Category: Fraud & Financial Crimes
- Source: Official Press Release
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