FOR IMMEDIATE RELEASE:

June 4, 2003

Kesha Handy               
P. O. Box 61129 Houston, TX 77208
Phone: 713/567-9335 Fax: 713/718-3390
E-Mail: usatty.txs@usdoj.gov

COURT CONVICTS TAX EVADER FOLLOWING BENCH TRIAL
Contact AUSA: Charles J. Escher
Phone: 713-567-9716

(Houston, Texas) United States Attorney Michael Shelby announced that Kenneth O'Kane was convicted on June 3, 2003 of tax evasion after a two-day trial before U. S. District Judge Melinda Harmon. O'Kane was convicted of evading payment of a combined total of over $68,000 in income taxes on his income tax years 1994, 1995, 1996, and 1997.

The evidence at trial presented by the United States proved that O'Kane was employed during all four years with a car dealership in Houston. During these four years, O'Kane filed and maintained forms W-4 with his employer claiming that he was exempt from federal income tax withholdings. Additionally, the government proved that O'Kane continued to evade payment of the tax liabilities for those years by other acts in later years, including using his minor child's social security number for use on some forms 1099 reporting his nonemployee compensation.

O'Kane faces a maximum punishment of 5 years in federal prison and a $250,000 fine on each of the four counts of conviction at his sentencing. Judge Harmon has set sentencing for September 19, 2003.

The case was investigated by agents of the Internal Revenue Service and prosecuted by Assistant U. S. Attorney Charles J. Escher.

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