The United States Attorney's Office
Eastern District of Kentucky
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The United States Attorney's Office Eastern District of Kentucky |
January 19 , 2007
LEXINGTON, Ky. — Cletis and Brenda Adams, of Irvine, Ky. were sentenced today to three months in prison, followed by four months home incarceration by U.S. District Court Judge Jennifer B. Coffman, after pleading guilty in September of last year to tax evasion.
Cletis, 66, and Brenda, 61, failed to report extra income from 1999-2001, that Brenda Adams described as gambling winnings, not from the alleged charity bingo operation. The unpaid joint tax liability for the couple was somewhere between $20,000 to $70,000.
The couple were indicted in February of last year, along with Gloria Williams and Rita Tipton. Tipton and Williams were sentenced in December of last year to 63 months in prison for mail fraud and tax evasion. The Indictment alleged all four assisted each other in the Jackpot Charity Bingo Operation in Madison County and stole money intended for charities through various schemes.
The Indictment alleged the Adams stated their taxable income for 1999 as $6,047, and the amount of tax due was $884, when in actuality they well knew and believed their taxable income for 1999 was $249,268, owing the United States $73,026 in taxes.
The Indictment also alleged for income taxes in 2000, the couple stated their total taxable income was $268, owing only $39 in taxes. However, they knew and believed their taxable income for 2000 was really $105,250, owing the United States $23,758 in taxes.
Amul R. Thapar, United States Attorney for the Eastern District of Kentucky made the announcement after the sentencing. The investigation preceding the guilty plea was conducted by the Internal Revenue Service, Criminal Investigations Division, and the Kentucky Department of Charitable Gaming. The United States was represented in the case by Assistant United States Attorneys Kenneth R. Taylor and Andrew Sparks.