April 7, 2003

Memphis Man Sentenced in Tax and Bank Fraud Investigation

Memphis, TN - Terrell L. Harris, United States Attorney for the Western District of Tennessee, announced today that U.S. District Judge Samuel H. Mays, Jr. sentenced Ronald Scott Vandiver to serve 12 months halfway house and home confinement, followed by 3 years of probation. Judge Mays also ordered Vandiver to pay $335,384.10 in restitution to the Bank of Bartlett and to cooperate with the IRS to resolve the matter. In sentencing Vandiver, Judge Mays said, "This is a serious crime; you have not only cheated a financial institution, but also the American taxpayers."

Vandiver pled guilty to tax evasion and bank fraud on December 23, 2002. According to an information filed last fall, Vandiver received taxable income of approximately $198,897 for calendar year 2000, thus generating a tax liability of approximately $58,081 owed to the United States. Vandiver attempted to evade this tax due and owing by failing to file an income tax return for 2000 with the Internal Revenue Service, as required by law.

Vandiver also pled guilty to devising a scheme to defraud the Bank of Bartlett. According to the information, Vandiver submitted false invoices from Simmons Industries, Inc., purporting them to represent work done by Simmons Industries, Inc., for the Walgreen Company Construction Department. The Bank of Bartlett would remit to Simmons Industries, Inc., 90% of the invoice amount. As a result, the Bank of Bartlett remitted a total of $335,384.10 to Simmons Industries, Inc., based upon the false invoices submitted by Vandiver.

This investigation was conducted by FBI and IRS Criminal Investigation. Assistant U.S. Attorney Timothy R. DiScenza prosecuted the case for the government.

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