CHESAPEAKE, Va. (WAVY) — A Chesapeake man faces a maximum of 5 years in prison after pleading guilty to tax fraud.
36-year-old Chesapeake resident and business owner Shane August owned and operated a home-healthcare business from 2013 through 2017.
During this time, prosecutors say August defrauded the IRS by hiding personal bank accounts, using undisclosed accounts to conduct business, maintaining a cash lifestyle to avoid the IRS, and making false statements about his ability to pay among others.
In addition, August also withheld employment taxes from approximately 60 of his employees as well as provided fraudulent employment tax forms for them.
Between 2014 and 2017, August reported personal income to the IRS of more than $900,000 but failed to pay taxes on this income and now owes more than $288,000 in personal income tax for those years.
Instead of paying his taxes, officials say August used large sums of money to pay for personal expenses like a building contract on a home and a luxury vehicle lease.
August is scheduled to be sentenced on March 24, 2022, where he faces a maximum of five years in prison.