Two facing 8 counts in tax evasion indictment
Posted on Sunday, September 7, 2008
URL: http://www.nwanews.com/adg/News/236612/
A Russellville couple was indicted Wednesday by a federal grand jury in Little Rock on charges of conspiracy to defraud the United States, income-tax evasion and evasion of payment. The eight-count indictment says Craig A. Hagerty, 45, and Angela L. Hagerty, 38, filed tax returns for tax years 1999 through 2004 that understated their tax due by about $ 1. 4 million. The joint returns understate the couple’s true income, their legitimate business expense deductions or both, the indictment says.
More specifically, the indictment alleges that they understated their income for the years 1999 through 2004 by about $ 3, 952, 010, and overstated their expenses and deductions for the years 1999 through 2001 by about $ 593, 000. They are both charged with one count of conspiracy, six counts of tax evasion and one count of evasion of payment.
According to a news release from U. S. Attorney Jane Duke, the indictment details several actions taken by the Hagertys to impede the Internal Revenue Service. They include failing to file tax returns for various trust entities through which they passed substantial amounts of money, and opening accounts at a foreign bank and then using a credit card from that bank for living expenses, without filing a foreign bank report.
From time to time, the Hagertys would change the name of business entities through which they conducted business, or in whose name they owned and controlled assets, and would move assets between the companies and entities to conceal income and avoid the collection of taxes, the news release