Randy Lynn White, Tax Evasion, Texas 2023

LUBBOCK, Texas — A Lubbock trustee has been caught in a web of deceit, as Randy Lynn White pleaded guilty to one count of tax evasion in federal court, announced U.S. Attorney Sarah R. Saldaña of the Northern District of Texas.

White, the sole trustee of the Frank F. McMordie Jr Family Trust, faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. According to the terms of the plea agreement filed in the case, White agrees to pay the amount of the tax loss, $211,165, in restitution.

White appeared in federal court in Lubbock, Texas, on today, before U.S. District Judge Sam R. Cummings, and pleaded guilty to the charge. He will remain on personal recognizance bond; a sentencing date was not set.

According to the factual resume filed in the case, White admits that he intentionally and willfully did not file required tax returns for 2007, 2008, and 2009 in order to evade the payment of taxes due and owing to the U.S. White agrees that as a result of this criminal conduct, the tax loss to the U.S. for those years is $211,165.

White, as the sole trustee of the Trust, derived substantial benefits and income from the Trust, both in administration fees from the Trust paid to him, and in monies he took from the Trust for his personal use. White had absolute control over the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests.

White paid himself excessive administrative fees and spent most of the Trust’s remaining money on extravagant personal expenditures, such as making his personal house payments, and buying motorcycles, diamond and gold jewelry, and cars. The factual resume goes on to state that White attempted to conceal his extravagant expenditures by paying a relatively small amount of the Trust’s income to the Trust’s beneficiary, Frank F. McMordie III, who resided in Mexico.

The case is being investigated by Internal Revenue Service Criminal Investigation. Assistant U.S. Attorney Paulina Jacobo is in charge of the prosecution. With White’s guilty plea, the people of Texas can rest a little easier knowing that justice is being served, and that those who attempt to cheat the system will be held accountable.

Source: https://www.justice.gov/usao-ndtx/pr/trustee-pleads-guilty-federal-court-tax-evasion