Libby Woman Sentenced for Tax Evasion, Theft of Elder Funds

Libby resident Candace Hessel Cummings, 65, stood before a federal judge in Missoula today and was handed five years of probation for a calculated scheme of tax evasion and theft from a vulnerable adult she was sworn to protect. Cummings admitted to funneling tens of thousands of dollars in unreported income through personal accounts, dodging federal tax obligations while betraying the trust of an incapacitated woman under her care.

U.S. Attorney Kurt Alme confirmed that Cummings pleaded guilty in January to one count of tax evasion, stemming from her failure to report $140,188 in income during 2012—triggering a tax loss of $35,096—and $52,500 in 2013, which resulted in an additional $13,420 loss to the IRS. Cummings was ordered to pay $48,516 in restitution, the combined total of the unpaid taxes and penalties tied to the fraud.

The case took a darker turn with revelations that Cummings exploited her role as financial caretaker for an incapacitated individual. In late 2011, Adult Protective Services granted her power of attorney, trusting her to act as a fiduciary without pay. She agreed to track all expenses and act in the person’s best interest. Instead, she looted the funds for personal use and buried the transactions by failing to declare them as income on her federal returns.

Cummings’ scheme unraveled in 2013 when financial red flags emerged. Suspicious withdrawals from the elderly woman’s certificates of deposit and savings bonds triggered alerts at her bank, which then contacted Adult Protective Services and local law enforcement. APS swiftly revoked Cummings’ power of attorney after confirming financial abuse.

The investigation was led by the IRS Criminal Investigation Division, which peeled back years of financial records to expose how Cummings diverted money meant for care into her own pockets. Assistant U.S. Attorney Timothy Racicot prosecuted the case, arguing for accountability not just for the tax fraud, but for the breach of trust at the heart of the crime.

Chief U.S. District Judge Dana L. Christensen presided over today’s sentencing, handing down probation instead of prison time—but making clear that Cummings’ actions eroded public trust in fiduciary systems meant to protect the most vulnerable. The case stands as a stark warning: exploiting the elderly for personal gain comes with federal consequences.