Pekin Timber Buyer Gets 21 Months for Tax Fraud

PEORIA, Ill. – Kenin L. Edwards, 59, of Pekin, Illinois, is headed to federal prison after being sentenced to 21 months for deliberately dodging taxes on over $2.7 million in income. U.S. District Judge James E. Shadid handed down the sentence on July 1, 2024, along with a year of supervised release and a hefty $10,000.00 fine. The case lays bare a calculated scheme to defraud both federal and state revenue services.

Edwards, a timber buyer in the logging business, brokered deals between landowners and sawmills, raking in commissions along the way. In late 2017, he established Edwards & Sons Log Purveyors with his son. But between 2014 and 2018, the IRS discovered Edwards systematically underreported his earnings. The total underreported income amounted to a staggering $2,100,365.00, leading to a federal tax loss of $180,626.00. He also stiffed the Illinois Department of Revenue (IDR) out of $22,004.00 by underreporting $673,359.00 in income.

A federal grand jury indicted Edwards in March 2021 on 14 counts, including mail fraud (Counts One through Four), wire fraud (Counts Five through Seven), and the core charge of filing false tax returns (Counts Eight through Fourteen). The indictment painted a picture of a deliberate and sustained effort to evade his tax obligations. While initially facing a multitude of charges, Edwards ultimately pleaded guilty in November 2023 to a single count of filing a false tax return, as part of a negotiated agreement with prosecutors.

At the sentencing hearing, prosecutors presented evidence detailing the extent of Edwards’ deception. While he had settled a remaining tax loss of $6,346.00 with the IRS, outstanding interest and penalties owed to both the IRS and IDR remain unpaid. The government successfully moved to dismiss the remaining charges against Edwards following the guilty plea, focusing on securing a substantial penalty for the tax fraud. The court will determine the full restitution amount at a later date.

Edwards could have faced up to three years in prison, a year of supervised release, and a $100,000.00 fine. The 21-month sentence reflects the seriousness of the offense and the need to deter others from engaging in similar schemes. The investigation was a joint effort by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Illinois Department of Revenue – a clear message that tax evasion will not be tolerated.

Assistant U.S. Attorneys Timothy C. Bass, Douglas F. McMeyer, and Sarah E. Seberger prosecuted the case, bringing Edwards’ years of financial deceit to a close. This case serves as a stark reminder that even those operating in seemingly low-profile industries like logging are subject to the full force of the law when it comes to tax compliance.