Press Release
Contact:
DONALD A. DAVIS
ASSISTANT U.S. ATTORNEY
PHONE: (616) 456-2404
TAX EVADER PLEADS GUILTY
TUESDAY, JULY 15, 2008 -
Grand Rapids, Michigan – Charles Edkins, Middleville, Michigan, owner and
operator of Baby Bliss, Inc., pled guilty before U.S. Magistrate Judge Ellen S. Carmody
to four counts of federal tax evasion, U.S. Attorney Charles R. Gross announced today. He was joined in the announcement by Special Agent in Charge Maurice Aouate,
Internal Revenue Service, Criminal Investigation Division (IRS CID).
This guilty plea was the result of a June 14, 2005 indictment charging Edkins with four counts of tax evasion and one count of willfully obstructing and impeding the due administration of the revenue laws of the United States of America.
According to court records, between 1995 and1998, Edkins owned and operated Baby Bliss, Inc., which manufactured young girls’ clothing primarily for Pleasant Company, the marketer and distributor of “American Girl” brand products. During 1995 through 1997, Edkins filed false tax returns with the Internal Revenue Service and, in 1998, failed to file a tax return, even though required to do so by law. Edkins’ gross income over the four-year period totaled more than $885,000. During the investigation, Edkins refused to provide books and records to the IRS, as required by law. He also directed a business associate to lie to the IRS if questioned about his income. In addition, Edkins disguised personal expenses as business expenses, including referring to a purchased Lincoln Town Car in his records as “five used Singer sewing machines,” purchasing two personal residences utilizing a sham corporation, and withdrawing corporate funds for personal use.
“IRS Criminal Investigation will vigorously investigate individuals who knowingly and willfully evade their tax obligation,” said Aouate. “We should not expect the honest taxpayer to foot the bill for those who hide income from the IRS.”
Tax evasion carries a maximum sentence of five years’ imprisonment and a $250,000 fine per count.
A sentencing date has not been set.
The case was investigated by special agents of IRS CID and is being prosecuted by Assistant U.S. Attorney Donald A. Davis.
END
This
web page last updated on:
July 15, 2008