Wisconsin Executive Pleads Guilty to Tax Evasion, DOJ Says

FORMER WISCONSIN PRODUCE VENDOR EXECUTIVE PLEADS GUILTY TO TAX EVASION

Concealed More Than $250,000 in Business Income

TUESDAY, FEBRUARY 13, 2018

WASHINGTON — The former corporate officer of a produce vendor in Johnson Creek, Wisconsin, pleaded guilty today to tax evasion, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department's Tax Division and U.S. Attorney Scott C. Blader for the Western District of Wisconsin.

According to the indictment and information provided to the court, Thomas G. Paine, 64, was the Vice President and Treasurer of G.W. Paine Inc., which sold fresh fruit and other produce under the business name Tree Ripe Citrus Company. Paine was responsible for the finance and tax aspects of the business, but failed to file corporate tax returns for tax years 2010 through 2012 and concealed the business' income from the Internal Revenue Service (IRS) by structuring cash bank deposits in amounts less than $10,000 to evade bank reporting requirements. Paine admitted to causing a tax loss between $250,000 and $550,000.

U.S. District Court Judge James D. Peterson scheduled sentencing for May 8. Paine faces a statutory maximum sentence of five years in prison, a period of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Blader commended special agents of IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Elizabeth Altman and Trial Attorney Eric C. Schmale of the Tax Division, who are prosecuting the case.

Additional information about the Tax Division and its enforcement efforts may be found on the division's website.