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December 18, 2015

Sherese L. Banks

Sherese L. Banks pled guilty to 16 class D felony counts of willfully filing false Kentucky individual income tax returns in Jefferson Circuit Court. She was sentenced to one year to serve, but was allowed supervised diversion for three years. In addition, Ms. Banks cannot prepare any tax returns other than her own during the three-year diversion period. This case resulted from Ms. Banks filing fraudulent returns for clients for tax years 2013 and 2014. Jeff Fogg investigated this case and presented it for prosecution.

​October 13, 2015

Frank West

pic of Frank WestFrank West of Georgetown was sentenced by Franklin Circuit Court to five years on each of two counts of theft by failure to make required disposition of property over $500, both Class D felonies. Mr. West was granted diversion for five years as long as he remains law abiding, does not engage in a business for which he is responsible for collecting trust taxes, and pays full restitution of $30,997.85. This case relates to sales tax that Mr. West collected on behalf of his Scott County business Fat Boys Barbeque that he did not remit to the Commonwealth. Debra Crawford investigated this case and presented it for prosecution.

​​September 4, 2015

David Whitson

pic of David WhitsonDavid Whitson of Fayette County pled guilty and was sentenced to three years one class D felony count of theft by failure to make required disposition of property in a case related to sales tax collected but not remitted for the business Katmandu Saloon, LLC, doing business as Cadillac Ranch. Mr. Whitson was granted diversion for five years provided that he meet several conditions, including paying the Department $24,203.09 in restitution. Debra Crawford investigated this case and presented it for prosecution.

June 6, 2015

Miriel Adan Deulofeu

Miriel Adan Deulofeu of Louisville was indicted by the Jefferson County Grand Jury on 15 Class D felony counts of Willfully Filing False Kentucky Income Tax Returns. These counts relate to returns for which Ms. Deulofeu used excessive Schedule A deductions to get refunds for her clients to which they were not entitled. Frank Fallis initially investigated this matter and Jeff Fogg finished that investigation and presented the matter for prosecution.

May 28, 2015

Tasha Marie Marshall

Tasha Marie Marshall of Louisville pled guilty to 42 counts of Willful Preparation of False Kentucky Income Tax Returns and four counts of Failure to Make a Tax Return, all Class D felonies. These counts were related to Marshall obtaining the identities of individuals and, without their knowledge, preparing false returns for which she requested to be deposited into her bank accounts. Marshall is to return for sentencing on July 16. Rob Watts and David Whitehouse investigated this case and David Whitehouse presented it for prosecution.

May 12, 2015

James S. Tinnell

James S. Tinnell of Mount Washington, was indicted by a Franklin County Grand Jury on four counts of Willfully Failing to File Kentucky Individual Income Tax Returns and two counts of Filing Fraudulent Kentucky Individual Income Tax Returns, all Class D felonies. These charges relate to money Mr. Tinnell earned from his business, Triple Crown Steakhouse, rental income and unemployment insurance proceeds. Jeff Fogg investigated this case and presented it for prosecution.

April 27, 2015

Erica Spencer

Erica Spencer of Louisville pled guilty in Jefferson Circuit Court to 34 counts of willful preparation of a false income tax return. She received a one year sentence that is suspended for five years because Ms. Spencer was also convicted of related federal crimes in the Western District of Kentucky where she was sentenced to 48 months in prison, to be followed by 3 years of supervised release. Ms. Spencer was also ordered to pay $2,411 to the Commonwealth. Rob Watts investigated the Commonwealth’s case and presented it for prosecution.

April 8, 2015

Daniel Cappiello

Daniel Cappiello of Adair County was sentenced in Franklin County Circuit Court in reference to two felony counts of Willful Failure to File Individual KY Income Tax Returns for the years 2009 and 2010. Mr. Cappiello was sentenced to two years on each count. He was granted pretrial diversion for three years and must pay restitution to the Department of Revenue in the amount of $3,035 plus any taxes owed for tax years 2011, 2012 and 2013. Thomas Smith investigated this case and presented it for prosecution.

March 31, 2015

Arron, Darla and Richard Rhodes

pic of Arron RhodesArron, Darla, and Richard Rhodes were sentenced to one Class D felony each. Arron was sentenced to one year in prison and Darla and Richard were granted five years’ diversion. These charges are related to $67,781.57 in collected sales tax and $15,267.63 in withheld taxes that were not remitted to the Commonwealth for the business Buddy’s Restaurant, LLC. Additionally, Darla Rhodes was sentenced in connection with $73,527.70 in collected sales tax and $20,428.22 in withheld payroll taxes that were not remitted to the Commonwealth for the business Buddy’s Management Co., LLC. Restitution was ordered in each matter, with Darla Rhodes responsible for Buddy’s Management Co., LLC and all three Rhodeses responsible for restitution in varying amounts for the Buddy’s Restaurant, LLC, matter. Debra Crawford investigated these cases and presented them for prosecution.

March 30, 2015

Karen Campbell and Alicia Howard

Karen Campbell and Alicia Howard were each indicted by the Fayette County Grand Jury for failure to file Kentucky individual taxes. Ms. Howard received three Class D felony counts for failing to file for tax years 2011 to 2013 and Ms. Campbell received two Class D felony counts for failing to file for tax years 2010 and 2011. These counts related to income the women earned while providing health care services for a disabled person in Lexington, Ky. Ms. Howard owes $10,294.24 in Kentucky individual income tax and Ms. Campbell owes $48,018 in Kentucky individual income tax. David Whitehouse investigated these cases and presented them for prosecution.

March 2, 2015

Lu Ann Wallace and Ann S. Giles

Lu Ann Wallace and Ann S. Giles were each indicted in Franklin Circuit Court on 24 Class C felony counts of Theft by Failure to Make Required Disposition of Property and one Class D felony of the same. These cases are related to $422,633.59 in taxes that were withheld from employees of the Fayette County business Resources in Health Care Management, LLC, and not remitted to the Commonwealth. Debra Crawford investigated these cases and presented them for prosecution.

​February 18, 2015

Danny Atherton and David Schrecker

pic of David SchreckerDanny Atherton and David Schrecker each pled guilty in Daviess County Circuit Court to three Class D felony counts of Theft by Failure to Make Required Disposition of Property and seven Class D felony counts of Theft by Deception. These counts are related to sales and withholding taxes collected but not remitted to the Commonwealth for the business Double D Entertainment Group, LLC, doing business as The Blind Parrot. They were sentenced to five years on each count to be served concurrently. They were each granted pretrial diversion for five years and were ordered to pay $53,280.41 in restitution. Debra Crawford investigated this case and presented it for prosecution.

February 6, 2015

Nancy Richards and Leonard Stevens II

pic of Nancy RichardsNancy Richards and Leonard Stevens II were each sentenced to five years for Theft by Failure to Make Required Disposition of Property, a Class D Felony, in reference to collecte. sales and withholding taxes for the Jefferson County business L & N Wine Bar and Bistro, LLC, that were stolen from the Commonwealth of Kentucky. They were given five years diversion by Franklin County Circuit Court and ordered to pay restitution to the Department of Revenue in the amount of $21,465.64. Nancy Richards also was sentenced to five years for Theft by Failure to Make Required Disposition of Property, a Class D Felony, in reference to collected sales and withholding taxes for the Jefferson County business Bulldog Concepts, Inc., that were stolen from the Commonwealth of Kentucky. She was given five years diversion by Franklin County Circuit Court and ordered to pay restitution to the Department of Revenue in the amount of $12,647.33. Debra Crawford investigated these cases and presented them for prosecution.

The Kentucky Department of Revenue conducts work
under the authority of the Finance and Administration Cabinet.