A Tulsa man, John D. Petrig, 49, has been convicted of tax evasion for hiding earnings in an effort to prevent the IRS from collecting his tax debts, announced U.S. Attorney Trent Shores.
Chief U.S. District Judge Gregory K. Frizzell accepted Petrig’s guilty plea Tuesday in federal court and released the defendant on bond pending sentencing on May 7.
U.S. Attorney Trent Shores stated, “The federal income tax system is based upon the compliance of the tax paying citizens of this nation. When an individual, such as Mr. Petrig, decides to shirk his responsibility to pay what he owes, then other law abiding citizens end up shouldering the burden. Mr. Petrig’s criminal acts cost taxpayers not only the loss of the unpaid taxes, but also the additional expense for investigating and prosecuting his criminal behavior.”
From 2000 to 2012, the defendant worked for a company as an independent contractor to install ATM machines inside casinos. The company paid him commissions based on the number of transactions executed at the ATMs. In 2012, Petrig filed his 2005 tax return, reporting an income of $394,317. In his plea agreement, Petrig admitted that from January 2012 to December 2012, he attempted to evade the payment of $110,372 for his 2005 income taxes. Petrig said that he was aware that the IRS had sent a levy to his employer, directing that his commission payments be sent to the IRS to pay his tax debt. Petrig further admitted that he sent a letter to the employer, directing that his future commissions be paid to a fictitious corporation to avoid the funds going to the IRS as payment for his tax debt.
Petrig faces a maximum sentence of 5 years imprisonment, a fine of up to $250,000, or both, and up to three years supervised release.
The Department of Treasury, Internal Revenue Service—Criminal Investigation Division investigated the case. U.S. Department of Justice Tax Division Trial Attorney/Special Assistant U.S. Attorney Andrew J. Kameros and Assistant U.S. Attorneys Victor A.S. Régal and Charles M. McLoughlin prosecuted the case.