Bloomberg: Tennessee Lawmaker Convicted of Tax Fraud (a Democrat, of course)

[Oceander]

By Andrew M. Ballard

Tennessee Lawmaker Convicted of Tax Fraud

Aug. 9 — A federal jury has found Tennessee Rep. Joe Armstrong (D) guilty of tax fraud, a conviction that will end his lengthy legislative career ( United States v. Armstrong , E.D. Tenn., No. 3:15-cr-00091, 8/8/16).

Armstrong was acquitted on two other charges he faced in a scheme prosecutors said involved profits from the sale of tobacco tax stamps after a rate hike the lawmaker voted for.

The verdict was rendered Aug. 8 at the U.S. District Court for the Eastern District of Tennessee.

Tobacco Tax Hike

According to the 2015indictment filed against Armstrong, the lawmaker began purchasing cigarette tax stamps at a $0.20 per pack rate in 2006, with the anticipation of it being tripled.

Armstrong was a member of the Tennessee House of Representatives' Finance, Ways and Means Committee and voted for a bill that included such a tax hike.

Tennessee's cigarette tax rate was increased to $0.62 per pack on June 7, 2007, and prosecutors said Armstrong made more than $300,000 through the resale scheme.

Profits Not Claimed

According to prosecutors, as part of the conspiracy, the lawmaker worked with Charles Stivers, a Manchester, Ky.-based accountant, to move money through Bowling Branch Investments Inc., to launder the profits from their scheme.

Prosecutors said Armstrong and his wife failed to include the profits from the tax stamp sales on their 2008 federal income tax returns, claiming income of $152,999 instead of $471,418, resulting in a knowing underpayment of more than $100,000 in taxes.

The lawmaker was indicted on three charges—conspiracy, tax evasion and filing a false tax return. The federal jury found him not guilty of the first two charges and guilty on the latter.

Armstrong faces up to three years in prison and a maximum fine of $250,000. He is scheduled to be sentenced Nov. 30.

Accountant Pleaded Guilty

Stivers pleaded guilty to a conspiracy charge related to his role in April 2015 ( United States v. Stivers , E.D. Tenn., No. 3:15-cr-58, plea agreement4/8/16).

The accountant is scheduled to be sentenced Aug. 22 and faces up to five years in prison and a maximum fine of $250,000.

[Oceander]

Gee, a democrat, who woulda thunk it.  At least this time the MSM didn't try to disguise his party affiliation by conspicuously not referring to it in the article.