CHESTERFIELD MAN IS SENTENCED TO PRISON FOR EVADING TAXES ON COMMISSIONS RECEIVED FROM PLAZA MOTORS

St. Louis, Missouri: A Chesterfield man has been sentenced to 21 months in prison and ordered to pay restitution for tax evasion on commissions he received from Plaza Motors, United States Attorney Ray Gruender announced today.

STEVEN HART, 43, of Chesterfield was sentenced to 21 months in prison and ordered to pay $126,704 restitution to the government. On August 13, 2001, Hart pled guilty to one felony count of tax evasion. He appeared this morning before Chief United States District Judge Jean C. Hamilton.

During the calendar years 1994 and 1995, Hart received a substantial amount of income in the form of commission checks from Plaza Motors, for the sale of automobiles. He directed that the checks be made out in the name of Midtown Motors, a company operated by Hart. He then endorsed the checks to a third party who acted as a private banker. The checks were allocated to pay expenses incurred by Hart, including mortgage, personal loans and credit card expenditures. Hart failed to keep records on this income producing activity.

According to court records, Hart’s 1994 return was filed in 2001 and his 1995 return was filed in July 1997. To date, he has not paid any income tax for the tax years of 1994 and 1995. Hart had taxable income of $188,626 for 1995 with a tax due in the amount of 75,365. Hart pled guilty to tax evasion for that year. In addition, Hart attempted to evade tax of $51,339 on taxable income of $131,831 for 1994. Hart did not agree with the specific figures alleged by the Government although he pled guilty to evading a substantial amount of federal income taxes for 1995.

Gruender went on to praise the work on the case by the Internal Revenue Service-Criminal Investigation and Assistant United States Attorney James Delworth.

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