Mike Hogan, Jr., who owns and operates several businesses in Lubbock, pled guilty today in federal court to corruptly interfering with the Internal Revenue Service laws, announced U.S. Attorney Richard B. Roper of the Northern District of Texas. Hogan entered his plea before U.S. District Judge Sam R. Cummings, who ordered a pre-sentence investigation with sentencing to be scheduled after that investigation is completed. Hogan faces a maximum statutory sentence of three years in prison and a $250,000 fine. In addition, according to the plea agreement filed in the case, Hogan agrees to pay restitution for all relevant conduct in tax years 2001, 2002, 2003 and 2004. He admitted to the Court that he failed to report $218,210.55 in business receipts, in the form of checks cashed, rather than deposited, that resulted in a total tax loss of $61,098.95 that is due to the IRS.
A federal grand jury in Lubbock returned an indictment in February charging Mike Hogan, Jr. with one count of corrupt interference with the Internal Revenue laws and two counts of structuring currency transactions. According to information in that indictment, Hogan owns and operates several businesses in and around Lubbock and at various times these businesses included Lubbock Mattress Sale, LLP, Discount Furniture Outlet, Smoker's Outlet LLC, all on 34th Street in Lubbock, and the Phillips 66 Restaurant in Slaton, Texas.
According to the factual resume filed in the case, Hogan admitted that from January 1, 1999 to April 10, 2006, he corruptly endeavored to obstruct and impede the due administration of the Internal Revenue Code and the ascertainment, assessment, computation and collection of federal income taxes by IRS employees. In 2000, when the IRS was seeking payment from Hogan for past due 1998 and 1999 employment taxes, he falsely claimed that he: had not paid employees wages after 1999; paid employee wages in cash; maintained a second set of books to skim currency; concealed his business receipts in bank accounts opened in nominee names; maintained large sums of currency at his residence, failed to disclose bank accounts to his tax return preparer; fabricated income and expense amounts for his tax returns; cashed business checks rather than depositing them; grossly understated receipts on his personal and corporate tax returns; structured large currency deposits at banks to avoid the bank's reporting requirements; and provided false information to IRS agents.
U.S. Attorney Roper praised the investigative efforts of the Internal Revenue Service - Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Ann C. Roberts of the Lubbock, Texas, U.S. Attorney's Office.
Source: United States Attorney Richard B. Roper, Northern District of Texas
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