Please E-mail suggested additions, comments and/or corrections to Kent@MoreLaw.Com.
Date: 02-24-2020
Case Style:
Case Number: 1:19-cr-00031-JPJ-PMS
Judge: James P. Jones
Court: United States District Court for the Western District of Virginia (Washington County)
Plaintiff's Attorney: Lena Busscher
Defendant's Attorney:
Description: Abingdon, VA - The United States of America charged Harold Kennedy and Hollie Kennedy with fax fraud.
The two brothers and owners of Kennedy Industrial Electronics, who were convicted of a payroll tax scheme that dated back at least 15 years and for defrauding the United States out of more than $907,000 of disability benefits, in addition to $148,000 in employment taxes, were sentenced last week to 12 months in prison.
In July 2019, Harold and Hollie Kenney each pled guilty to one count of conspiracy to defraud the United States and one count of failing to pay over and collect employment taxes.
According to court documents, the Kennedys conspired with Kennedy Industrial Electronics employees, and their wives, including Danny Hill, Geneva Hill, Gerald Stevens, Teena Charlene Stevens, and Ricky Allen Matney. Danny Hill, Gerald Stevens, and Ricky Matney were each receiving disability benefits from the Social Security Administration [SSA]. To hide the fact that Hill, Stevens, and Matney were fully capable of working and were, in fact, working, the Kennedys wrote checks payable to the wives of Hill and Stevens and a middle name for Matney.
Court documents also revealed that between 2001 and 2015 the defendants conspired to defraud the United States through a scheme in which Harold and Hollie Kennedy, the owners of Kennedy Industrial Electronics, failed to report to the IRS and SSA over $500,000 in wages resulting in more than $900,000 in disability payments being made that should not have been paid.
The investigation of the case was conducted by the Internal Revenue Service - Criminal Investigations, the Social Security Administration Office of the Inspector General, and the Russell County Sheriff’s Office.
Charges:
18:371.F - CONSPIRACY TO DEFRAUD THE UNITED STATES - 18:371 - (2001-2015)
(1)
26:7202.F - WILLFUL FAILURE TO COLLECT/PAY OVER TAX - 26:7202 - (June 2013-Jan 2016)
(2)
Outcome: CBOP: 12 months; S/R: 2 years; Fine: Waived; S/A: $100.00; Restitution: $904,778.00 to the Social Security Administration (Joint and Several with defendants in Case Nos.: 1:19CR28 and 1:19CR29); $27,987.86 (Joint and Several with defendants in Case Nos.: 1:19CR29) to the Internal Revenue Service.
Plaintiff's Experts:
Defendant's Experts:
Comments: