A Georgia businessman, KENNETH JOHNSON, SR., age 52, of Stone Mountain, Georgia, was sentenced to 3 years probation that included one year of home incarceration for participating in a kickback scheme and filing false tax returns with the Internal Revenue Service.
U.S. District Judge Stanwood R. Duval handed down the sentence on after JOHNSON previously pleaded nolo contendere (no contest) to conspiring to pay kickbacks in a federal debris removal contract and two counts of filing false tax returns with the Internal Revenue Service.
As part of the sentence, JOHNSON was ordered to pay $113,771 in restitution to the Internal Revenue Service. The total amount of kickback payments made by JOHNSON to his brother-in-law, ANTHONY PENN, was $236,461.55 from July 12, 2006 to February 8, 2008.
The kickback scheme involved JOHNSON being hired by Company A, a local solid waste management company, as a sub-tier subcontractor to work on a debris removal project in the City of New Orleans after Hurricane Katrina devastated the metro area. JOHNSON was paid by Company A for the work, but he agreed to provide a cut of the revenue to ANTHONY PENN as a reward for steering the contract to him.
The investigation into the kickback scheme also revealed that JOHNSON filed false tax returns with the IRS for tax years 2007 and 2008 in an effort to conceal the kickback scheme and to avoid paying taxes on his income from the debris removal work.
JOHNSON‘s failure to report the income resulted in him avoiding paying $113,771.00 in federal taxes. The case was prosecuted by Assistant U.S. Attorneys Spiro G. Latsis and Theodore R. Carter, III.
Related Federal Cases
- Alfredo Franco, Filing False Income Tax Returns, Louisiana 2021 · Louisiana
- Cheryl L. Kinchen, Filing False Tax Returns, Louisiana 2022 · Louisiana
- Peter Zavell, Filing a False Tax Return, South Carolina 2000 · Florida
- Leroy G. Jackson, Aiding in Filing False Taxes, Louisiana 2016 · Louisiana
- Gary R. Gibbs, Conspiracy to Defraud, Louisiana 2023 · Louisiana
Key Facts
- State: Louisiana
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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