Veronica Fairchild, Tax Fraud, South Dakota 2014

Canistota Woman Convicted of Tax Fraud

A South Dakota woman has been convicted of tax fraud after a federal jury trial in Sioux Falls, South Dakota. Veronica Fairchild, 42, of Canistota, South Dakota, and Okoboji, Iowa, was found guilty of four counts of tax fraud. The conviction was the result of a lengthy investigation by the Internal Revenue Service Criminal Investigation Division.

The investigation, which began in 2010, revealed that Fairchild had failed to claim over $850,000 in income from 2005 to 2008. Fairchild claimed the unreported income she received from performing private shows as an exotic dancer was a gift. However, the jury rejected this claim and convicted her on all four counts of tax fraud.

Fairchild was sentenced to 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes. The restitution is a significant portion of the unreported income that Fairchild failed to claim.

The case against Fairchild was prosecuted by Assistant U.S. Attorney Jeffrey C. Clapper. Fairchild was indicted by a federal grand jury on July 9, 2013, and a jury trial commenced on June 24, 2014. The trial concluded on June 26, 2014, with the jury convicting Fairchild on all four counts of the indictment.

On appeal, Fairchild challenged the evidence supporting her conviction, the jury instructions regarding the source of income, and the length of her sentence. However, the Eighth Circuit Court of Appeals affirmed the conviction and held that the evidence was sufficient to support the jury’s finding that Fairchild knowingly and willfully underreported her income as an exotic dancer.

The court also held that the jury instructions were proper and that the length of her sentence was reasonable. Fairchild’s conviction and sentence serve as a reminder of the importance of paying taxes on all income, regardless of its source.

Veronica Fairchild, 42, of Canistota, South Dakota, and Okoboji, Iowa. Exact Criminal Charges: Four counts of tax fraud. City and State: Canistota, South Dakota. Exact Date: July 9, 2013 (indicted) and June 24-26, 2014 (jury trial). Sentence or Outcome: 33 months in custody and ordered to pay over $214,000 in restitution to the U.S. Department of Treasury, Internal Revenue Service, for unpaid taxes. Dollar Amounts: $214,000 (restitution) and $850,000 (unreported income).

Source: https://www.justice.gov/usao-sd/pr/canistota-woman-convicted-tax-fraud-0