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May 25, 2010
FORMER DENVER MAN CHARGED FOR NOT REPORTING INCOME FROM SALE OF PROSTITUTION BUSINESS TO THE IRS
DENVER – Scottie J. Ewing, age 40, a former resident of Denver, Colorado, was charged today by Information with one count of tax evasion related to the operation and sale of a prostitution business the defendant owned and operated. Ewing appeared in U.S. District Court in Denver, where he was advised of the charges pending against him. He was released on a $5,000 unsecured bond. The defendant today filed a notice of disposition. The next step is for the court set a change of plea hearing date.
According to the Information, beginning on January 1, 2005, and continuing through April 17, 2006, Ewing did willfully attempt to evade and defeat income tax due and owing to the United States for the calendar year 2005 by the following acts of evasion: 1) The defendant failed to file a tax return for the calendar year 2005 or otherwise report to the Internal Revenue Service cash and other payments he received from the operation and sale of a prostitution business known as Denver Sugar/Denver Players; and 2) Ewing used an entity called Sindicate Media & Consulting, LLC, to perform business functions, such as credit card processing, to disguise from the Internal Revenue Service the true source and amount of the income he received from Denver Sugar/Denver Players.
“IRS Criminal Investigation fulfills a unique role in federal law enforcement’s counter-prostitution effort in that we track the source of funds as well as the ultimate disposition as to where those funds are applied,” said Christopher M. Sigerson, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office. “All income regardless of the source is taxable.”
If convicted, Ewing faces not more than 5 years in federal prison, as well as a fine of not more than $250,000.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the Denver Police Department.
Ewing is being prosecuted by Assistant U.S. Attorney Matthew Kirsch.
An Information is a formal charging document, where the defendant waives the Constitutional right to be indicted by a federal grand jury.
The charges contained in the Information are allegations, and the defendant is presumed innocent unless and until proven guilty.
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