(Washington, DC) District resident Leland Schwartz, president of States News Service, Inc., pled guilty to two counts of tax fraud (willful failure to pay withholding and corporation franchise taxes) on November 29. The Office of Tax and Revenue (OTR) stated the total amount due for outstanding corporation and individual taxes to be $278,106.18.
Schwartz pled guilty in Superior Court of the District of Columbia, where he was sentenced to 10 days in jail followed by an 80-day period of home confinement. Schwartz was also ordered to perform 300 hours of community service in the District, tailored to take advantage of his skills in journalism and literacy, and was placed on unsupervised probation until all conditions have been satisfied, not to exceed five years.
Schwartz paid $278,106.18, the total amount of restitution owed the District of Columbia, on November 29. In addition, Schwartz paid a voluntary criminal fine of $10,000 to the Antifraud Fund and a $100 fine to the Victims of Violent Crime Fund.
“Due to OTR’s stepped up compliance efforts, we are aggressively pursuing all types of tax evasion, fraud or misrepresentation, no matter what the amount of tax owed,” said Deputy Chief Financial Officer Daniel L. Black, Jr. “We encourage citizens to report tax fraud to our Tax Fraud Hotline at 1-800-380-3495.”
For questions or additional information regarding this tax fraud case, contact Tabitha D. McQueen, Assistant Attorney General, Criminal Section, at (202) 727-9278.
