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Daily Court Reporter - News Lawyer sentenced for filing false tax returns

 

Lawyer sentenced for filing false tax returns

Scott W. Atway, 44, of Powell, was sentenced in U.S. District Court to 12 months and one day in prison, four months of community confinement and eight months of house arrest for filing a false tax return. Atway was also ordered to pay restitution in the amount of $600,000.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation, announced the sentence handed down yesterday by Chief U.S. District Judge Edmund A. Sargus, Jr.

According to the statement of facts in this case, for several years, including 2010 through 2013, Atway owned multiple Verizon Wireless stores in Central Ohio aside from being a self-employed attorney who operated his own law practice. In 2013, he also generated income from a real-estate holding company for his rental properties.

Atway provided incomplete or false documents to his tax-return preparer for these years. He further made false statements to her when asked to justify how he paid for his lifestyle.

During this timeframe, Atway was building and improving upon a luxury home in Powell. He paid more than $800,000 to contractors for additions including an enclosed tennis court, basketball court, in-ground pool, six-car garage and an elevator. These expenses could not have been covered by the amount of taxable income Atway reported to the IRS.

He was also buying high-end cars, including a $99,000 Land Rover, a $50,000 Porsche 911, a $24,000 Lexus IS250, a $71,000 BMW X6 and a nearly $143,000 Audi R8. (The purchase prices of some of the cars were partially offset by trade-ins.) For these cars, he either received no financing or paid off the loans early, and the income he reported to the dealerships was much greater than what he reported on his tax returns.

“Instead of paying the taxes that he owed, Atway bought high-end vehicles and built an extravagant home for himself,” U.S. Attorney Glassman said. “Atway stole from all of us—to the tune of over half a million dollars. He deserves the term of incarceration he received.”

“The license to run a business is not a license to avoid paying taxes,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “By filing false tax returns, he cheated all Americans, since we all pay our fair share for the government services and protections that we enjoy.”

U.S. Attorney Glassman commended the cooperative investigation by the IRS Criminal Investigation, as well as Assistant United States Attorney Peter K. Glenn-Applegate, who is representing the United States in this case.

About the United States Attorney's Office for the Southern District of Ohio

Our mission is to protect and serve the citizens of the Southern District of Ohio through the ethical, vigorous and impartial enforcement of the laws of the United States, and in so doing to defend the national security, improve the safety and quality of life in our communities, protect the public funds and financial assets of the United States, maintain a courteous and professional working environment, and, with skill and integrity, seek to do justice in every matter

We are the United States Attorney’s Office for the Southern District of Ohio, one of 94 United States Attorney’s Offices in the country. We are a part of the Department of Justice. Our District is comprised of 48 counties in the southern half of the state.

We represent the interests of the United States, both criminal and civil, in federal court. It is our responsibility to enforce federal criminal laws. We work to prevent terrorism and promote the nation’s security. We are committed to preventing crime, enforcing federal laws, and representing the rights and interests of the American people. We strive to ensure the fair and efficient administration of justice for all Americans.

We prosecute those individuals and organizations that violate federal criminal statutes. We work with a multitude of federal, state, and local agencies, including the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Federal Bureau of Investigation (FBI), the Bureau of Immigration and Customs Enforcement (ICE), the Internal Revenue Service (IRS), the U.S. Forest Service, the U.S. Park Service, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, the U.S. Secret Service, The Ohio Highway Patrol, and multitude of local law enforcement agencies. We prosecute a wide-variety of offenses including domestic and foreign terrorism; child pornography and exploitation; civil rights violations; bank robbery and other violent crimes; firearms offenses; drug trafficking; health care fraud; immigration violations; public corruption; tax evasion; mail, bank and wire fraud; environmental offenses; and identity theft.

We also represent the United States in civil litigation, affirmative and defensive. As such, we sue individuals or entities who have violated federal civil laws. We also defend the interests of the United States when it, or one of its departments, agencies, or employees is sued, and we defend federal programs and agency actions.

We collect monies owed to the United States from forfeiture, restitution, and fines imposed as a part of the judgment in federal cases. We also pursue collection of civil debts owed to the United States, including student, small business, housing, and farm loans. Finally, we represent the interests of federal agencies in bankruptcy court.

Our district covers the bottom half of the state of Ohio.

Our district contains three staffed offices in Columbus, Cincinnati, and Dayton. The Columbus office is the headquarters of our District and is the largest, followed by Cincinnati then Dayton.

Date Published: October 22, 2018

 

The United States Attorneys Office Southern District of Ohio

 

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