Saturday, January 24, 2015

STATE NEWS: Leawood woman charged with tax evasion

KANSAS CITY, KAN. ----- Kathleen Stegman, 56, Leawood, Kan., is charged in a superseding indictment with five counts of federal tax evasion and one count of conspiracy to defraud the Internal Revenue Service. Co-defendant Christopher Smith, 50, Leawood, Kan., is charged with one count of conspiracy to defraud the IRS.

The indictment alleges Stegman, who owned Midwest Medical Aesthetics Center, Inc., in Leawood, under-reported the company’s income and overstated the company’s expenses.

The conspiracy count alleges Stegman and Smith fabricated $50,575 in deductible expenses for Stegman’s company.

In fact, Stegman wrote a check to Smith’s company, Encompass Construction Group, LLC, and Smith purchased gold coins for Stegman. Stegman caused the payment to be deducted as repairs and maintenance on her company’s equipment.

Upon conviction, tax evasion carries a maximum penalty of five years in federal prison and a fine up to $250,000 on each count; and conspiracy carries a maximum penalty of five years and a fine up to $250,000.

The Internal Revenue Service investigated.

Assistant U.S. Attorney Jabari Wamble and with DOJ Tax Attorney Ryan Raybould are prosecuting.


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