West Virginia Man Sentenced on Tax Fraud Charges

Written by TaxSqueal. Posted in Tax Fraud Cases

On April 15, 2010, in Beckley, W.Va., Philip H. Weber, aka Spider, of Raleigh County, was sentenced to 30 months in prison, to be followed by one year of supervised release, and ordered to pay a $100,000 fine.  Weber pleaded guilty to filing a false tax return on August 20, 2009, which resulted in a total tax loss of $592,000.  According to court documents, Weber owned and operated a nationwide motorcycle apparel retail business. From 2000 through 2004, Weber traveled to motorcycle rallies all over the United States and sold items such as leather jackets, chaps and T-shirts. He conducted his business primarily in cash, maintained no business bank accounts, paid employees in cash, falsely claimed a Wyoming residence to avoid state income taxes, failed to maintain customary business records, provided his accountant with false information, and systematically converted cash he received from sales into money orders and cashier checks.  In addition, he instructed his employees to structure their purchases of money orders in amounts that were just under the reporting postal requirements, and transferred a substantial portion of his assets into the name of his ex-wife.