Clarksville man faces prison time for $1M tax fraud scheme
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A Clarksville-based private investigator has been sentenced to nine months in federal prison after pleading guilty to a $1 million tax fraud scheme. The U.S. Attorney’s Office for the Southern District of Indiana says Tracy Leonard hid income from the Internal Revenue Service for five years.
The IRS says Leonard cashed 186 business income-related checks at a check cashing business, rather than depositing them into a bank account.
Many of the checks were typically over $25,000 and sometimes more than $50,000, according to the U.S. Attorney’s office.
The Justice Department says there was a “significant discrepancy” between the amount of the checks received and cashed and what he reported on his federal income tax returns.
The IRS says Leonard owes more than $300,000 in back taxes. Restitution will be set in a future court date.