Owners of a local towing company have each been sentenced to one year, six months in federal prison following a jury’s guilty verdict in February 2015, on tax fraud charges stemming from the defendants skimming money from their business.
According to U.S. Attorney John Horn, the charges and other information presented in court: Kenneth and Kimberly Horner owned Topcat Towing and Recovery Inc., a towing business in Lithonia. Between 2005 and 2008, Topcat Towing had an exclusive contract with DeKalb County, for all county car tows needed from the south precinct of the county.
Between 2005 and 2008, the defendants skimmed more than $1.5 million in cash receipts from their towing business and deposited those cash receipts into their personal bank account without disclosing the income to their tax return preparer or on corporate and personal tax returns filed with the IRS. The defendants tried to conceal their cash deposits from the government by “structuring” their deposits, which is the act of splitting up cash deposits so that none of them exceed $10,000, for the purpose of evading a Currency Transaction Report from being filed.
Kenneth Horner, 59, and Kimberly Horner, 54, both of Milledgville, Georgia, have each been sentenced to one year, six months in federal prison, three years of supervised release, and ordered to pay restitution in the amount of $144,455 to the IRS.
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