November 4, 2023 - A Nevada man was sentenced on Friday to one year and one day in prison for evading payment of his federal income taxes.
Scott H. Lawrence, of Las Vegas, pleaded guilty to tax evasion on July 26, 2022.
According to court documents and statements made in court, from approximately 2009 through 2019, Lawrence owned and operated Turn Two Inc. (Turn Two), a Nevada real estate company. In March 2010, the IRS levied Lawrence’s personal bank account in an attempt to satisfy an outstanding tax debt. After learning of the IRS levy, Lawrence began taking steps to thwart IRS collection efforts by, among other things, cashing large portions of his wife’s paycheck to keep the funds out of a bank account the IRS could levy. Beginning in 2011, Lawrence began depositing his wife’s entire paycheck and other earnings into a corporate bank account not subject to levy, held by Turn Two and used that account to pay most of his family’s personal living expenses.
Lawrence then directed his wife to create a new interior design business, D Lawrence Hospitality LLC (DLH), and to open a business bank account for DLH. Lawrence funneled much of his and his wife’s personal income through DLH to impede the IRS’s ability to collect the couple’s unpaid taxes. For years, Lawrence concealed the existence and personal use of DLH’s bank account from the IRS.
Lawrence also caused his attorney to send a materially misleading letter to the IRS and to pay his taxes using an intentionally overdrawn bank account.
In all, as a result of his evasive conduct, Lawrence prevented the IRS from collecting more than $1.9 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Anne R. Traum for the District of Nevada ordered Lawrence to serve two years of supervised release and to pay approximately $1,905,325 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and U.S. Attorney Jason M. Frierson for the District of Nevada made the announcement.
IRS-Criminal Investigation investigated the case.
Trial Attorneys Patrick Burns and Boris Bourget of the Tax Division prosecuted the case.
Source: DOJ Release