KIRKLAND, WA – Daniel Nix, 56, owner of Kirkland interior design firm Dannix Design, is facing a mountain of federal charges after a nearly twenty-year run dodging income taxes. Nix, along with his associate Karen Street, 58, was indicted this week for a complex scheme to avoid paying over $340,000 to the IRS, according to U.S. Attorney Annette L. Hayes.
The indictment details a brazen pattern of tax evasion stretching back to 1998, with consistent refusal to pay income taxes from 2000 to 2007. Nix allegedly employed a litany of illegal tactics, including establishing shell companies to conceal income and assets, filing fraudulent bankruptcy claims, and submitting false claims against the government itself. This wasn’t a momentary lapse; it was a sustained, calculated effort to cheat the system.
Even as the IRS pursued him, Nix doubled down. From 2010 to 2013, he continued to hide income and avoid assessments. The scheme reached a new level of audacity in February 2013 when Nix sent eleven fake money orders to the IRS, totaling over a million dollars in face value, attempting to appear compliant. His long-time partner, Karen Street, also jumped in, submitting two fake money orders of her own to cover back taxes she owed.
Nix is indicted on thirteen counts of tax evasion, eleven counts of providing fictitious financial obligations, and one count of corrupt interference with the administration of the Internal Revenue Code. Street faces two counts of providing fictitious financial obligations. If convicted, Nix faces up to five years in prison and a $250,000 fine for tax evasion, up to 25 years and a $250,000 fine for the fictitious financial instruments, and up to three years and a $5,000 fine for interfering with the tax code. Street faces the same penalties for the charges against her.
The investigation was conducted by the Internal Revenue Service Criminal Investigation (IRS-CI), highlighting the agency’s continued focus on tackling complex financial crimes. Assistant United States Attorney Seungjae Lee is prosecuting the case. While the indictments represent serious allegations, both Nix and Street are presumed innocent until proven guilty beyond a reasonable doubt.
This case serves as a stark reminder that no one, regardless of profession or perceived sophistication, is above the law. The Grimy Times will continue to follow this case as it unfolds, bringing you the unvarnished truth about federal crime in Washington State and beyond.
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Key Facts
- State: Washington
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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