hiropractor Bends Law and Heads to Prison

Published: 2009-03-26 11:08:45
Author: San Diego 6, November 17, 2008

SAN DIEGO - A San Diego chiropractor convicted of defrauding the government and failing to file income taxes for five years was sentenced Monday to 18 months in federal prison and ordered to pay $80,000 in restitution.

Kathryn Hanes and her partner, Madonna Hanes, were convicted in March of conspiracy to defraud the United States and income tax evasion.

U.S. District Judge Thomas Whelan sentenced Madonna Hanes to five months in federal prison, five months in home detention and fined her $3,000.

"Today's sentencing of Kathryn and Madonna Hanes clearly shows that if you risk hiding income from the IRS through fraudulent trust schemes, you will go to prison," said Catherine D. Tucker, the acting special agent in Charge, IRS Criminal Investigation, for the Los Angeles Field Office.

According to evidence produced at trial, Kathryn and Madonna Hanes failed to file tax returns from 1996 through 2000; mailed frivolous letters to the Internal Revenue Service claiming they were not U.S. citizens; claimed the IRS had no authority or jurisdiction to collect taxes from them, and also claimed they earned no income so they owed no income taxes.

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