Upshur Co. couple sentenced for tax fraud - - Tyler, Longview, Jacksonville |ETX News

Upshur Co. couple sentenced for tax fraud

Released by Eastern District of Texas:

UPSHUR COUNTY, TX - A Big Sandy, Texas couple has been sentenced to federal prison for tax violations in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.

Timothy J. Patton, 61, and his wife, Dawn G. Patton, 54, were found guilty on July 7, 2011, of conspiracy to attempt to evade federal income tax and five counts of attempting to evade federal income tax following a 3-day trial before U.S. District Judge T. John Ward. Today, Timothy Patton was sentenced to 40 months in federal prison and Dawn Patton was sentenced to 36 months in federal prison. They were also ordered to pay restitution to the Internal Revenue Service in the amount of $571,734.00.  

According to information presented in court, beginning in 2000, the defendants stopped filing federal income tax returns and began insisting that their employers not withhold any federal income tax. Each provided false W-2s to their employer, claiming that each was single and exempt from income tax. They also had their employers begin issuing paychecks to the Office of the Patriarch of the Gathering of the House of Israel, an entity created by Timothy Patton using an invalid Employer Identification Number. The Pattons would regularly refuse to provide a Social Security number to their employers. The defendants, who insisted on being referred to as Brother T and Mimi, claimed that they were not the individuals named in the indictment. The guilty verdict on all counts was reached after approximately 3 ½ hours of deliberation.  

The case was investigated by the IRS and prosecuted by Assistant U.S. Attorney Alan Jackson.

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