Former Panhandle Business Owner Sentenced for Tax Fraud

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PENSACOLA, FLORIDA – Patrick Alfred Anderson, 62, of Laughlin, Nevada, was sentenced yesterday to 24 months in federal prison for income tax fraud.  The sentence was announced by Pamela C. Marsh, United States Attorney for the Northern District of Florida.

Anderson pled guilty earlier this year to three counts of filing fraudulent tax returns.  Between 2010 and 2011, Anderson sold synthetic drugs, commonly known as “spice” and “bath salts,” from retail stores he operated in northwest Florida. These include Haight Ashbury LLC, Woodstock Navarre, Woodstock NV, Woodstock Fort Walton Beach, Woodstock Mary Esther, and Groovy Gifts.  Anderson derived more than $700,000 in income from the sale of these drugs.  He failed to report this income on his tax returns, resulting in a net tax loss of $173,549. 

In addition to the 24-month sentence, Anderson was ordered to pay $173,549 in restitution to the Internal Revenue Service.  In related civil and administrative forfeiture actions, Anderson was required to forfeit approximately $900,000 in property as proceeds from his sale of the synthetic drugs, including cash, two pieces of real property, and eight vehicles.

This case was prosecuted by Assistant U.S. Attorney Tiffany H. Eggers and was investigated by the Internal Revenue Service–Criminal Investigation and the Okaloosa Multi-Agency Drug Task Force.