Monday, March 24, 2014

Former Gaston County Man Pleads Guilty in State Tax Case

Raleigh
Mar 24, 2014

RALEIGH – A Greenville, SC man pleaded guilty Monday in Wake County Superior Court to North Carolina tax charges.

John Milton Smeak, Jr., 59 formerly of 3521 Country Club Drive, Gastonia, now residing at 168 Ridgeland Drive Unit 100, Greenville, SC, pleaded guilty on March 24, 2014 to two counts of Failure to Pay State Income Tax.

Superior Court Judge Carl R. Fox found Smeak guilty and ordered him to pay restitution totaling $109,778.43. He was also ordered to pay a criminal fine of $25,000.

Information presented in court showed that during the tax years 2001 through 2003, Smeak worked as President of Sales at a Gaston County business. While in that role, Smeak made arrangements with a client of that business whereby the client would pay Smeak directly for advantages associated with purchases from the business. Smeak’s actions were discovered by his employer when it was later determined that Smeak was paid by the client directly to his American Express Account. Smeak received $610,913.53 in this manner and failed to report this as income to the North Carolina Department of Revenue.

Smeak paid full restitution and criminal fine totaling $134,778.43, while in court.

The charges against Smeak resulted from an investigation by a special agent with the Department’s Criminal Investigations Section in Raleigh.

 


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