Kansas Businessman Sentenced for Conspiracy

KANSAS CITY, KAN. – A federal judge ordered a Kansas businessman to pay approximately $215,000 in restitution and serve one year of probation as part of his sentence for failing to pay over payroll tax collections to the Internal Revenue Service. In 2018 Charlie James, 43, of De Soto pleaded guilty to one count of conspiracy to defraud the United States.

According to court documents James was the co-owner of KC United, LLC which operated several subsidiary infrastructure and utility contractor companies. In April 2011, three of the subsidiaries filed Chapter 11 Bankruptcy in U.S. District Court in the District of Kansas. Under the terms of the bankruptcy, Charlie James was required to continue to withhold payroll taxes from the employees then forward the funds to the IRS. Instead, from the time of the bankruptcy filing through April 2012, James took part in a conspiracy in which $214,305 was not paid to the IRS. 

“When dishonest business owners conspire with others to carry out schemes to defraud the United States, all taxpayers pay the price,” said Special Agent in Charge Tyler Hatcher, IRS Criminal Investigation. “Charlie James went to great extremes to hide assets from the IRS, and that behavior brought him to the attention of IRS Criminal Investigation special agents and the Department of Justice.  We have a duty to protect the integrity of the nation’s tax laws and will take aggressive actions to do so.”

The IRS- Criminal Investigation investigated the case.

Assistant U.S. Attorney Jabari Wamble prosecuted the case.

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