Metal company pleads guilty to structured transactions
Ralph B. Davis firstname.lastname@example.org
PIKEVILLE — The manager of a Letcher County business pleaded guilty last week to charges that the business structured bank deposits over a three-year period to avoid tax reporting requirements.
Federal prosecutors announced last month their intent to charge the Baker Metal Company with a single count of structuring currency transactions to evade reporting requirements. However, on Thursday, in U.S. District Court, company president Randall Baker waived indictment and pleaded guilty to the charge.
According to an information brief, the company withdrew over $3.4 million between January 2009 and January 2012 in increments under $10,000. The $10,000 figure is significant, because that is the level at which the bank would have been required to report the withdrawals to the government.
In the plea agreement, the company acknowledges paying employees in cash, without withholding taxes.
The plea agreement requires the company to cooperate with the Internal Revenue Service in order to pay back taxes.
In exchange for the plea, prosecutors are recommending a fine of between $30,000 and $50,000, as well as forfeiture of $254,538 that was seized from the company’s bank account. The company had faced a maximum fine of $1 million.
Sentencing has been set for May 7.
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