Former Penn. State Auditor Imprisoned for Tax Evasion
Troy A. Beam of Shippensburg, Pa., has been sentenced to 74 months in prison by U.S. District Judge Christopher C. Conner of the Middle District of Pennsylvania. Beam is a former certified public accountant and state auditor in the Pennsylvania Auditor General’s Office. He was convicted by a federal jury on May 4, 2011 of tax evasion, obstructing and impeding the due administration of the Internal Revenue laws, and willful failure to file federal income tax returns.
Evidence at trial proved that Beam earned more than $10.3 million in gross income from 1992 to the date of the indictment through his home construction business known as “Sunbeam Builders,” and from being an owner/operator of two real estate businesses known as “Latrobe Leasing” and “Goldstar Property Management.” The latter two companies purchased, rented and sold real estate.
However he failed to report that income. In fact, Beam failed to file any federal income tax returns since April 1996, when he filed his 1995 tax return reporting a loss. Moreover, in April 1996, Beam also filed false amended federal income tax returns for 1992, 1993 and 1994, seeking tax refunds for taxes he previously had paid for those years.
The evidence also proved Beam obstructed the IRS in its attempt to calculate and collect his taxes by using numerous sham trusts and other entities, including North Star Investment Holdings Ltd. to hide his income and assets. He used North Star to set up a bank account in the Cayman Islands into which he deposited nearly $3 million of income derived from his construction business.
Beam’s conviction and sentencing were announced by the Justice Department and the Internal Revenue Service (IRS) announced. In the press release, Peter J. Smith, U.S. Attorney for the Middle District of Pennsylvania said, “The evidence showed beyond a reasonable doubt that Troy Beam is a consummate fraud and hypocrite who evaded his responsibilities as a citizen while participating in a charade to deceive the government, other citizens and himself for his own selfish ends,”
Rick A. Raven, Acting Chief, IRS Criminal Investigation was also quoted saying, “The use of abusive trust schemes and sham entities intended to conceal income from the IRS isn’t tax planning; it’s criminal activity. As the tax filing season comes to a close, it’s more important than ever that the American people feel confident that everyone is paying the taxes they owe.”
