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Recent Cases

These are some recent developments in cases brought by the Kentucky Department of Revenue's Division of Special Investigations.  Information on older cases is also available.

December 22, 2015

David A. Duncan

David A. Duncan of Dixon was indicted by a Franklin County grand jury on six class D felony counts of failure to make required disposition of property. These charges are related to $30,185 in taxes Mr. Duncan withheld from his employees at CSM Trucking for the years 2009 to 2014 that was not remitted to the Commonwealth. David Whitehouse investigated this case and presented it for prosecution.

December 18, 2015

Sherese L. Banks

Sherese L. Banks pled guilty to 16 class D felony counts of willfully filing false Kentucky individual income tax returns in Jefferson Circuit Court.  She was sentenced to one year to serve, but was allowed supervised diversion for three years.  In addition, Ms. Banks cannot prepare any tax returns other than her own during the three-year diversion period.  This case resulted from Ms. Banks filing fraudulent returns for clients for tax years 2013 and 2014.  Jeff Fogg investigated this case and presented it for prosecution.

November 24

John T. Barbalas

John T. Barbalas of Bowling Green was indicted by a Franklin County grand jury on two Class C and six Class D felony counts of Theft by Failure to Make Required Disposition of Property. These charges are related to the theft of $50,735.45 in unremitted sales, withholding and transient room taxes that were collected on behalf of the business South Central Hospitality Group, LLC, doing business as Days Inn. Debra Crawford investigated this case and presented it for prosecution.

October 13

Frank West

pic of Frank WestFrank West of Georgetown was sentenced by Franklin Circuit Court to five years on each of two counts of theft by failure to make required disposition of property over $500, both Class D felonies. Mr. West was granted diversion for five years as long as he remains law abiding, does not engage in a business for which he is responsible for collecting trust taxes, and pays full restitution of $30,997.85. This case relates to sales tax that Mr. West collected on behalf of his Scott County business Fat Boys Barbeque that he did not remit to the Commonwealth. Debra Crawford investigated this case and presented it for prosecution.

September 29

James M. Keith

James M. Keith was indicted by the Franklin County Grand Jury. He is charged with three felony counts of Theft by Failure to Make Required Disposition of Property, two Class D felonies and one Class C felony. He was also charged with three counts of Second Degree Persistent Felony Offender. These counts are related to $19,231.83 in sales tax that were collected but not remitted to the Commonwealth for his business Stink’s Diner, which had operated in Lawrenceburg in Anderson County, before moving to the Forks of the Elkhorn in Franklin County. Debra Crawford investigated this case and presented it for prosecution. 

September 9

Sherese L. Banks

Sherese L. Banks was indicted by the Jefferson County Grand Jury on 16 counts of Willfully Filing a False Kentucky Income Tax Return.  Banks submitted returns for clients with fraudulent information on them resulting in a larger return to the individuals than they were entitled to. The individuals were unaware that this fraudulent information was on their tax returns.  Jeff Fogg investigated this case and presented it for prosecution. 

Troy A. Curtis

Troy A. Curtis was indicted by the Jefferson County Grand Jury on one count of Willfully Failing to File a Tax Individual Income Tax Return for 2010 and three counts of Willfully makes a False Individual Income Tax Returns for Tax Years 2011, 2012 and 2013.  These charges are related to income Mr. Curtis made while selling items on Amazon.  Brad Boyd investigated this case and presented it for prosecution.

August 4

Steven and Serena Ashley

Steven and Serena Ashley of Bee Spring, Ky., were each indicted in Franklin Circuit Court on four counts of willfully filing false Kentucky income tax returns.  These counts were for the years 2010, 2011, 2012, 2013 and related to $1,980,855 in income the couple failed to claim for various businesses, including car sales.  David Whitehouse investigated this case and presented it for prosecution. 

July 24, 2015

John Milliner

John Milliner of Louisville was sentenced to five years on each of six counts of willfully making false tax returns, all Class D felonies. Mr. Milliner was granted diversion for five years as long as he remains law abiding.  This case relates to income received for Mr. Milliner’s work as a real estate agent for the years 2005, 2006, 2009, 2010, 2011, and 2012. Jeff Fogg investigated this case and presented it for prosecution.

June 30, 2015

Andrew M. Hutto

Andrew M. Hutto of Louisville was indicted in Franklin County Circuit Court on two counts of Theft by Failure to Make Required Disposition of Property, both Class D felonies. These charges are related to the Louisville business D.M.B., Inc., doing business as Baxter Station Pub & Grill. Mr. Hutto reported collecting $24,404.48 in sales tax and did not remit it to the Commonwealth.  Debra Crawford investigated this case and presented it for prosecution. 

June 23, 2015

James Wooldridge

James Wooldridge of Paducah was indicted by the Franklin County Grand Jury on 13 Class D felony counts of Failure to File Kentucky Individual Income Tax returns. These counts relate to income earned but not reported by Mr. Wooldridge for the years 1999  and 2002 to 2013. Jeff Fogg investigated this matter and presented it for prosecution. 

June 6, 2015

Miriel Adan Deulofeu

Miriel Adan Deulofeu of Louisville was indicted by the Jefferson County Grand Jury on 15 Class D felony counts of Willfully Filing False Kentucky Income Tax Returns.  These counts relate to returns for which Ms. Deulofeu used excessive Schedule A deductions to get refunds for her clients to which they were not entitled. Frank Fallis initially investigated this matter and Jeff Fogg finished that investigation and presented the matter for prosecution.

May 28, 2015

Tasha Marie Marshall

Tasha Marie Marshall of Louisville pled guilty to 42 counts of Willful Preparation of False Kentucky Income Tax Returns and four counts of Failure to Make a Tax Return, all Class D felonies.  These counts were related to Marshall obtaining the identities of individuals and, without their knowledge, preparing false returns for which she requested to be deposited into her bank accounts. Marshall is to return for sentencing on July 16.  Rob Watts and David Whitehouse investigated this case and David Whitehouse presented it for prosecution. 

May 12, 2015

James S. Tinnell

James S. Tinnell of Mount Washington, was indicted by a Franklin County Grand Jury on four counts of Willfully Failing to File Kentucky Individual Income Tax Returns and two counts of Filing Fraudulent Kentucky Individual Income Tax Returns, all Class D felonies.  These charges relate to money Mr. Tinnell earned from his business, Triple Crown Steakhouse, rental income and unemployment insurance proceeds. Jeff Fogg investigated this case and presented it for prosecution.

May 8, 2015

Vijaykumar Patel

Vijaykumar Patel pled guilty to a Class C Felony count of Theft by Failure to Make Required Disposition of Property in Boone County Circuit Court. This count is related to sales and withholding taxes collected but not remitted for the business, Jai Maadi, Inc., doing business as Comfort Inn. He was sentenced to five years in prison and ordered to pay restitution.  Debra Crawford investigated this case and presented it for prosecution. 

April 27, 2015

Erica Spencer

Erica Spencer of Louisville pled guilty in Jefferson Circuit Court to 34 counts of willful preparation of a false income tax return. She received a one year sentence that is suspended for five years because Ms. Spencer was also convicted of related federal crimes in the Western District of Kentucky where she was sentenced to 48 months in prison, to be followed by 3 years of supervised release. Ms. Spencer was also ordered to pay $2,411 to the Commonwealth.  Rob Watts investigated the Commonwealth’s case and presented it for prosecution. 

April 8, 2015

Daniel Cappiello

Daniel Cappiello of Adair County was sentenced in Franklin County Circuit Court in reference to two felony counts of Willful Failure to File Individual KY Income Tax Returns for the years 2009 and 2010.  Mr. Cappiello was sentenced to two years on each count.   He was granted pretrial diversion for three years and must pay restitution to the Department of Revenue in the amount of $3,035 plus any taxes owed for tax years 2011, 2012 and 2013. Thomas Smith investigated this case and presented it for prosecution.

March 31, 2015

Arron, Darla and Richard Rhodes

pic of Arron Rhodespic of Darla Rhodes Arron, Darla, and Richard Rhodes were sentenced to one Class D felony each.  Arron was sentenced to one year in prison and Darla and Richard were granted five years’ diversion.  These charges are related to $67,781.57 in collected sales tax and $15,267.63 in withheld taxes that were not remitted to the Commonwealth for the business Buddy’s Restaurant, LLC. Additionally, Darla Rhodes was sentenced in connection with $73,527.70 in collected sales tax and $20,428.22 in withheld payroll taxes that were not remitted to the Commonwealth for the business Buddy’s Management Co., LLC. Restitution was ordered in each matter, with Darla Rhodes responsible for Buddy’s Management Co., LLC and all three Rhodeses responsible for restitution in varying amounts for the Buddy’s Restaurant, LLC, matter.  Debra Crawford investigated these cases and presented them for prosecution.

March 30, 2015

Karen Campbell and Alicia Howard

Karen Campbell and Alicia Howard were each indicted by the Fayette County Grand Jury for failure to file Kentucky individual taxes. Ms. Howard received three Class D felony counts for failing to file for tax years 2011 to 2013 and Ms. Campbell received two Class D felony counts for failing to file for tax years 2010 and 2011.  These counts related to income the women earned while providing health care services for a disabled person in Lexington, Ky. Ms. Howard owes $10,294.24 in Kentucky individual income tax and Ms. Campbell owes $48,018 in Kentucky individual income tax.  David Whitehouse investigated these cases and presented them for prosecution.

March 14, 2015

Frank Horine

Frank Horine, 63, of Lexington, was indicted on eight Class D felony counts of willfully filing or making false tax returns or failure to pay tax in Franklin Circuit Court. These counts related to Mr. Horine’s failure to file and pay Kentucky individual income tax on more than $500,000 he earned through his business, Helping Hand Thrift Shop, Inc., from 2004 to 2011.  Frank Fallis investigated this case and presented it for prosecution. 

March 2, 2015

Lu Ann Wallace and Ann S. Giles

Lu Ann Wallace and Ann S. Giles were each indicted in Franklin Circuit Court on 24 Class C felony counts of Theft by Failure to Make Required Disposition of Property and one Class D felony of the same. These cases are related to $422,633.59 in taxes that were withheld from employees of the Fayette County business Resources in Health Care Management, LLC, and not remitted to the Commonwealth. Debra Crawford investigated these cases and presented them for prosecution.

February 26, 2015

Jason Winders

Jason Winders was indicted by the Jefferson County Grand Jury on three Class D felony counts of Theft by Failure to Make Required Disposition of Property.  This charge is related to $27,115.68 in collected sales tax that was not remitted to the Commonwealth for the business Best Bedz, LLC of Louisville, Ky. Brad Boyd investigated this case and presented it for prosecution.

February 20, 2015

Arron, Darla and Richard Rhodes

Arron Rhodes, Darla Rhodes and Richard Rhodes each pled guilty to two Class D felony counts of Theft by Failure to Make Required Disposition of Property in Fayette County Circuit Court. These charges are related to $67,781.57 in collected sales tax and $15,267.63 in withheld taxes that was not remitted to the Commonwealth for the business Buddy’s Restaurant, LLC.  Sentencing is scheduled for April 2, 2015. Darla Rhodes also pled guilty to two additional Class D felony counts of Theft by Failure to Make Required Disposition of Property in Fayette County Circuit Court. These charges are related to $73,527.70 in collected sales tax and $20,428.22 in withheld taxes that were not remitted to the Commonwealth for the business Buddy’s Management Co., LLC. Sentencing is also scheduled for April 2, 2015. Debra Crawford investigated these cases and presented them for prosecution.

February 18, 2015

Danny Atherton and David Schrecker

pic of David SchreckerDanny Atherton and David Schrecker each pled guilty in Daviess County Circuit Court to three Class D felony counts of Theft by Failure to Make Required Disposition of Property and seven Class D felony counts of Theft by Deception. These counts are related to sales and withholding taxes collected but not remitted to the Commonwealth for the business Double D Entertainment Group, LLC, doing business as The Blind Parrot. They were sentenced to five years on each count to be served concurrently. They were each granted pretrial diversion for five years and were ordered to pay $53,280.41 in restitution. Debra Crawford investigated this case and presented it for prosecution. 

February 6, 2015

Nancy Richards and Leonard Stevens II

pic of Nancy Richardspic of Leonard StevensNancy Richards and Leonard Stevens II were each sentenced to five years for Theft by Failure to Make Required Disposition of Property, a Class D Felony, in reference to collected  sales and withholding taxes for the Jefferson County business L & N Wine Bar and Bistro, LLC, that were stolen from the Commonwealth of Kentucky. They were given five years diversion by Franklin County Circuit Court and ordered to pay restitution to the Department of Revenue in the amount of $21,465.64.  Nancy Richards also was sentenced to five years for Theft by Failure to Make Required Disposition of Property, a Class D Felony, in reference to collected sales and withholding taxes for the Jefferson County business Bulldog Concepts, Inc., that were stolen from the Commonwealth of Kentucky. She was given five years diversion by Franklin County Circuit Court and ordered to pay restitution to the Department of Revenue in the amount of $12,647.33. Debra Crawford investigated these cases and presented them for prosecution.

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Last Updated 1/28/2016
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