BECKLEY, W.Va. – A federal jury convicted Christopher Jason Smyth, 48, of Pineville, of tax crimes after a four-day trial. Smyth’s conviction stems from his failure to pay taxes withheld from employees’ wages at Stat EMS, LLC, an ambulance service he operated.
Smyth, who created Stat EMS after his previous ambulance business accrued millions of dollars in employment tax liabilities and filed for bankruptcy, was found guilty of two counts of failing to pay over taxes for two quarters in 2016. He was also convicted of one count of obstructing the IRS related to its efforts to collect the unpaid taxes from him.
According to evidence presented at trial, Smyth caused Stat EMS to be founded in the name of a nominee owner but continued operating the business in the same manner as before. He was responsible for withholding Social Security, Medicare, and income taxes from employees’ wages and paying them to the IRS. However, for two quarters in 2016, Smyth did not fully pay the taxes to the IRS, instead using the funds for personal expenses and transferring money to businesses held by his friends and family.
The IRS determined that Stat EMS accrued approximately $3.3 million in unpaid taxes. Smyth was eventually assessed the unpaid taxes personally and attempted to mislead an IRS revenue officer by denying any personal involvement in the business and misrepresenting his financial situation.
The jury found Smyth not guilty on the failure to pay over taxes counts related to two quarters in 2017. Smyth is scheduled to be sentenced on September 4 and faces up to five years in prison for each failure to pay taxes count and three years in prison for obstructing the IRS. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Will Thompson for the Southern District of West Virginia made the announcement. IRS Criminal Investigation investigated the case, with Assistant Chief David Zisserson, and Trial Attorneys Kavitha Bondada and Andrew Ascencio of the Tax Division, along with Assistant U.S. Attorney Erik Goes of the Southern District of West Virginia, prosecuting the case.
United States District Judge Frank W. Volk presided over the jury trial. A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:22-cr-182.
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Key Facts
- State: West Virginia
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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