Tobacco store owner admits manipulating bank deposits to fool IRS

The owner of Mohican Discount Tobacco Shop in Rockholds told a federal judge she and other employees kept the company’s regular bank deposits, totaling more than $650,000 under the threshold that would require bank officials to report them to the IRS.

Denise Crawford, 44, pleaded guilty in U.S District Court in London Wednesday to once count of willfully causing a financial institution to fail to comply with record keeping and reporting regulations.

IRS

IRS

According to the plea agreement, Crawford admitted she and others made multiple bank deposits between July 28, 2009 and Jan. 14, 2010 at Hometown Bank of Corbin in order to avoid reporting the income. The deposits totaled $651,107.14.

Under federal law, banks that receive cash deposits in excess of $10,000 must final a transaction report with the federal government.

According to Kyle Edelan, spokesperson for the U.S. Attorney’s Office, the money has been seized by the IRS.

Crawford faces a maximum sentence of one year in prison. In addition the company may be fined up to $500,000.

Crawford will be formally sentenced on Aug. 4

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