Related Federal Cases
- Tren de Aragua Leaders Unsealed, Terror Cartel Crimes, Texas, 2023 · Nebraska
- Pam Bondi, Money Laundering, Texas, 2023 · North Carolina
- Ken Paxton Blocked Texas Land Seizure, Oklahoma OK, 2025 · Texas
- Ken Paxton Issued Notice for Election Code Violations, Texas, 2025 · Texas
- Robert O’Dell Neihart, Wells Fargo Bank Robbery with Firearm, Farmi… · New Mexico
Defendant’s Elaborate Scheme to Evade Taxes Uncovered
HOUSTON – In a shocking case of tax evasion, Robert Edward Cone, a local businessman, has been sentenced to 12 months and one day in prison for attempting to hide a $1 million severance payment from the Internal Revenue Service (IRS).
Cone, the former president of Industrial Holdings Inc. (IHI), a manufacturing company in Houston, received the $1 million severance payment in December 2001 as part of a merger with another company. However, instead of reporting the payment to the IRS, Cone directed IHI to wire the funds into a foreign account in the Channel Islands, where he concealed the income from his tax return preparer.
According to the plea agreement, Cone’s elaborate scheme involved establishing an offshore business and using a British Virgin Islands company called Jomach Limited to facilitate the transfer of funds. He then directed the Foreign Trust Company to disburse funds from the Jomach Account to vendors of goods and services that he had purchased in the U.S. and to U.S. bank accounts that he controlled.
Between January 2002 and October 2006, Cone concealed his interest in the foreign account from another professional tax return preparer, who prepared a 2005 tax return for Cone that falsely stated he had no interest in any foreign account. However, Cone had, in fact, caused two transfers of $5,000 each to be made to his personal benefit from the Jomach Account during that year.
Cone’s actions resulted in the IRS losing approximately $282,871 in federal income taxes for tax year 2001. He has already made full restitution of the unpaid taxes, penalties, and interest, totaling $939,917.
U.S. District Judge Sim Lake handed down the sentence, which also includes a fine of $50,000 and a one-year-term of supervised release. Cone is also subject to possible additional civil assessments by the IRS as a result of this offense.
IRS-CI conducted the investigation, and Assistant United States Attorney Jimmy Sledge Jr. prosecuted the case. Cone was permitted to remain on bond and will voluntarily surrender to a U.S. Bureau of Prisons facility in the near future.
At a time when hard-working citizens are preparing their tax returns, the IRS and Department of Justice are committed to halting international tax evasion. This sentence sends a strong message to those who attempt to hide their income in foreign accounts, according to Lucy Cruz, special agent in charge of IRS-CI.
Key Facts
- State: Texas
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
ðŸâ€Â’ Get the grimiest stories delivered weekly. Subscribe free →
MORE FEDERAL CRIME NEWS
US NewsUS NewsUS NewsUS News