KC CFO Dodges Taxes, Faces Federal Indictment

KANSAS CITY, MO – Steven Matthews, 48, of Kansas City, is facing a federal indictment alleging a brazen attempt to dodge taxes and obstruct the Internal Revenue Service. The charges, unsealed today following Matthews’s arrest, paint a picture of a CFO allegedly going to extreme lengths to shield his income.

According to the five-count indictment handed down by a federal grand jury on March 29, 2017, Matthews is accused of one count of tax evasion, one count of corruptly impeding the due administration of the internal revenue laws, and three counts of failure to file federal income tax returns. The alleged scheme stretches back over a decade, originating from unpaid trust fund recovery penalties dating back to 2002 and 2003, when Matthews served as Chief Financial Officer at Winntech Digital Systems.

Prosecutors allege Matthews attempted to evade payment of taxes owed for 2008 income, as well as the aforementioned penalties. The indictment details a series of increasingly desperate maneuvers. Matthews allegedly dipped into corporate funds for personal expenses, concocted a false deed of trust for a condominium, and funneled money through an attorney trust account—all to avoid paying what he owed. He even allegedly established SLM Consultants, LLC, using his mother’s Social Security number and listing her as the sole member, in a transparent attempt to hide assets.

The government also claims Matthews operated primarily in cash from 2011 through 2015, a classic tactic for obscuring financial trails. Beyond the alleged evasion, Matthews stands accused of failing to file federal income tax returns for 2012, 2014, and 2015 – adding insult to injury for the IRS. The indictment suggests a pattern of deliberate and calculated disregard for the law.

“These charges are serious, and we will vigorously prosecute this case,” stated Tom Larson, Acting United States Attorney for the Western District of Missouri. However, Larson cautioned that the indictment represents accusations only, and Matthews is presumed innocent until proven guilty at trial. The burden of proof rests with the prosecution, who will need to present compelling evidence to a jury.

The case is being prosecuted by Assistant U.S. Attorney Paul S. Becker, with a thorough investigation conducted by IRS-Criminal Investigation. This isn’t just about dollars and cents; it’s about a system designed to be gamed, and one man allegedly attempting to do just that. Grimy Times will continue to follow this case as it unfolds and report on the proceedings.