Michael J. Tiernan, Tax Fraud, Virginia 2022

NEWPORT NEWS, Va. – A federal jury has delivered a guilty verdict against Michael J. Tiernan, a 62-year-old Williamsburg businessman, on charges of filing false tax returns and failure to file a tax return.

The evidence presented at trial revealed that Tiernan, who served as the financial officer for a number of business entities related to Ford’s Colony, including Ford’s Colony Realty, LLC, a large resort community in Williamsburg, filed federal income tax returns that falsely understated the income he received from these entities.

According to court records, Tiernan filed false tax returns for the tax years 2015 and 2016, reporting some earnings in both years but offsetting his claimed income with high deductions that resulted in zero taxable income for both years. He also claimed to be insolvent in 2015 to exclude the discharge of debt.

The evidence at trial showed that Tiernan received underreported income from the business entities in the amount of at least $289,401 in 2015 and at least $204,523 in 2016. He cashed many of the checks he wrote and received from these entities and deposited cash into his personal bank account.

Additionally, Tiernan failed to file a tax return for 2017, despite receiving $111,352 from one business. From 2015 to 2017, he deposited over $1.6 million into his personal bank account and spent nearly all of these funds in a combination of checks and debit card transactions.

Tiernan also prepared and filed business tax returns for the entities that concealed the true compensation he received.

Tiernan faces a maximum penalty of seven years in prison when sentenced on March 2, 2022. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-59.

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