News and Press Releases

HUSBAND AND WIFE TAX DEFIERS GO TO PRISON

FOR IMMEDIATE RELEASE
November 17, 2010

Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced that Scott D. Haynes, age 56, and his wife Kristin W. Haynes, age 56, formerly from Colbert, Washington, were sentenced to prison after each pleaded guilty to five counts of failing to file tax returns for the years 1999 through 2003.

Scott Haynes was ordered to serve 40 months in prison and Kristin Haynes was ordered to serve 24 months in prison. Each will be under one year of court supervision after they are released from prison and both were ordered to pay $833,751 to the IRS for their unpaid taxes.

Kristin Haynes is an artist, internationally known for her creation of the Dreamsicles line of figurines cast in porcelain and sold as collectibles. Scott Haynes was a fifty-percent shareholder, with his wife, in a corporation that managed the figurine business and collected royalties. During the five years the Haynes refused to file tax returns, their income was $2,722,098. Scott Haynes sentencing range was higher based on his prior conviction for tax evasion for the calendar year 1995. In 1998, he was sentenced to 21 months in prison and ordered to pay $1,268,365 in unpaid taxes. During 2004, the Haynes left Colbert, Washington and relocated to Roatan, Honduras. They were both arrested on the current charges when they travelled to Florida last June. They have been detained ever since.

Michael C. Ormsby, U.S. Attorney for the Eastern District of Washington, said, "The privilege of living well in the United States carries certain burdens, one of which is the voluntary payment of taxes. The system only works when everyone pays their fair share."

This investigation was conducted by the Internal Revenue Service -- Criminal Investigation. This case was prosecuted by George Jacobs and Earl Hicks, Assistant U.S. Attorneys for the Eastern District of Washington.

10-CR-034-JLQn.

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