U.S. Attorney's Office Release on Sentencing of Tax Evader

[2] Mr. Mosley resides in San Rafael California and is in the insurance business under the name Mosley and Associates, LTD. Mr. Mosley admitted filing personal income tax returns for the years 1995 through 1999 knowing them to be false with the intent to evade the payment of income tax that he owed. He also admitted filing a corporate return for Mosley Associates, LTD for the year 1999 knowing it to be false as to a material matter.

[3] In 1995, Mr. Mosley created a foundation at the National Heritage Foundation (NHF) called The Tim and Carol Mosley Family Foundation (Mosley Family Foundation). In each of the years 1995 through 1999, Mr. Mosley sent payments to NHF and earmarked them for the account of the family foundation. Mr. Mosley informed his return preparer that the payments to NHF were charitable donations. Rather than being bona fide charitable contributions to NHF, however, Mr. Mosley admitted using the proceeds of the family foundation account to pay for the school tuition for his children at the San Domenico Primary School in San Anselmo, California.

[4] To make it appear that the tuition payments were bona fide charitable contributions, Mr. Mosley made payments to NHF, which credited the payments to his account under the name of the Mosley Family Foundation. Thereafter, pursuant to his instructions, NHF issued checks to San Domenico Convent, which were used, not as donations, but to pay for the tuition of his children at the Primary School.

[5] Despite the fact that the NHF payments were ultimately used to pay for his childrens' tuition, Mr. Mosley improperly claimed as a charitable contribution deduction in each year the payments he made to the NHF. In addition, for the years 1996 through 1999, Mr. Mosley admitted claiming false business expenses on his Forms 1040, Schedules C and the corporate return of Mosley Associates, LTD., for the year 1999.

[6] The government requested at the sentencing hearing that the defendant be ordered to pay restitution to the United States in the amount of $274,326.57, which included $165,326.57 in interest and penalties. The defendant paid $109,000 to the United States IRS on the eve of sentencing. The Court will decide on July 31, 2003 whether the defendant shall be ordered to pay as restitution the additional interest and penalties.

[7] The prosecution is the result of an investigation by agents of the Criminal Investigation Division of the IRS. Jay R. Weill, Chief, Tax Division is the Assistant U.S. Attorney who prosecuted the case.

[8] A copy of this press release may be found on the U.S. Attorney's Office's website at www.usdoj.gov/usao/can. Related court documents and information may be found on the District Court website at www.cand.uscourts.gov or on http://pacer.cand.uscourts/gov.

[9] All press inquiries to the U.S. Attorney's Office should be directed to Assistant U.S. Attorney Matthew J. Jacobs at (415) 436-7181.