Ohio Accountant Gets 10 Years for $4.7M Scam

PENSACOLA, FL – Dennis G. Sartain, a Columbus, Ohio accountant, will spend the next decade behind bars after being sentenced to 120 months in federal prison for a sprawling fraud scheme that cost taxpayers over $1 million and defrauded victims nearly $3.7 million. U.S. District Judge Michael H. Watson handed down the sentence following a guilty plea entered by Sartain in February 2008.

The feds say Sartain, who handled the books for two Columbus home building and real estate businesses, systematically paid employees “under the table” to avoid payroll taxes. He then allegedly covered his tracks by falsifying or completely omitting Forms 1099, the documents used to report income to the IRS. When those employees filed their own taxes, Sartain reportedly prepared false returns underreporting their earnings and minimizing their tax liability. The indictment detailed a concerted effort to hide the income, with Sartain and accomplices shredding documents and deleting electronic records relevant to the investigation.

But the deception didn’t stop there. Court documents reveal Sartain also filed false individual income tax returns for himself and his wife, even listing his occupation as “unemployed” in some years while simultaneously pocketing unreported income from the companies he serviced. He further compounded the crime by aiding in a fraudulent mortgage application, submitting doctored payroll stubs to inflate a loan applicant’s income. The goal? To secure a mortgage that wouldn’t have been approved based on the applicant’s true financial picture.

The scheme also involved a $54,295 payment connected to a home sale orchestrated by one of the real estate businesses. Federal prosecutors allege this payment represented excess funds fraudulently obtained through the manipulated loan application – a clear case of money laundering. Sartain’s actions weren’t just about avoiding taxes; they were about actively concealing illicit funds and profiting from deception.

“This sentence shows that taxpayers who fail to comply with their federal tax obligations or assist others in doing so will pay a heavy price,” stated Assistant Attorney General Nathan J. Hochman. “Sartain has been branded a convicted felon for the rest of his life, and still has to pay back all of the taxes plus interest and steep penalties.” Eileen Mayer, IRS Chief of Criminal Investigation, added, “Paying individuals ‘under the table’ in an effort to circumvent the tax laws is criminal activity. We are relentless in our efforts to investigate these individuals and hold them accountable.”

Sartain’s legal troubles aren’t over. He’s also facing additional charges from a September 2008 indictment alleging conspiracy, obstruction of justice, and witness tampering. A trial for those charges is scheduled for December 2008. The case was prosecuted by Tax Division trial attorneys Richard M. Rolwing, Jill M. Cassara, and Sean B. O’ Connell, with assistance from IRS special agents. Grimy Times will continue to follow this developing story.