Attorney sentenced to two years in prison for tax evasion
A Sacramento federal judge on Thursday sentenced a former West Sacramento attorney to two years in prison for a “sophisticated” tax-evasion scheme.
According to prosecutors, James Stewart Richards, 69, owed federal income taxes between 1994 and 2003 totaling $170,000.
Not only did he not pay taxes, but he went to extremes to evade payment. He filed compromise offers with the Internal Revenue Service in which he omitted bank accounts and six rental properties.
Court papers say Richards asked his bank to not disclose information to the IRS, and he attempted to conceal his assets by withdrawing $100,000 in cashier’s checks. He also tried to tie up his money by buying a yacht, which he titled and registered in someone else’s name to conceal it. He also made false statements to a bankruptcy court and to the IRS.
At sentencing U.S. Chief District Judge Morrison England Jr. in a news release said Richards, who took three semesters of tax courses in law school, used a “sophisticated scheme” to hide money from the IRS.
The case was investigated by the Internal Revenue Service. Assistant U.S. Attorneys Audrey Hemesath and Nirav Desai prosecuted.
Richards was indicted in 2010 and pleaded guilty last spring.
