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Story Archives: Jones indicted for filing false tax returns, tax evasion


Jones indicted for filing false tax returns, tax evasion
posted Thursday, January 24th, 2008 @ 1:45 pmE-mail Story E-mail Story | Print Story Print Story 
Former state Sen. Charles D. Jones of Monroe was indicted by a federal grand jury on charges that he filed false income tax returns and evaded paying income taxes dating to 1995.

Jones' indictment was under seal as of 1 p.m. today (Thursday), according to a spokesperson with the U.S. Attorney's office for the Western District of Louisiana. Around 1:30 p.m. Thursday, U.S. Attorney Donald Washington of the Western District issued a news release on Jones' indictment.

The indictment said that in August 2001, Jones filed a U.S. Individual Income Tax Return, Form 1040 in 2000, which falsely reported the amount of his gross receipts or sales, the news release stated.

Also, indictment said Jones filed an Amended U.S Individual Income Tax Return in 2003, Form 1040x in 1999, which falsely reported the amount of his adjusted gross income.

The tax evasion charge said Jones, from July 1995 to December 2003, "attempted to evade and defeat a large part of income tax due and owing by him to the United States by converting checks for legal fees into cashier's checks and cash and purchasing property and a certificate of deposit," according to the news release.

"It is further alleged that Jones used a nominee to purchase property and used the certificate of deposit as collateral for a loan and later reimbursed the nominee over $300,000 for construction of a home on the property purchased," Washington said. "The indictment also alleges that Jones later executed an act of exchange of the property from the nominee to Jones and his wife, and then executed a cash sale deed transferring the home from nominee to Jones' wife."

Meanwhile, The Ouachita Citizen obtained a copy of the indictment of Jones.

Count 1 of the indictment for "making and subscribing a false return" said the following:

"On or before the 6th day of August, 2001, in the Western District of Louisiana and elsewhere, the Defendant, CHARLES D. JONES, did willfully make and subscribe a U.S. Individual Income Tax Return, Form 1040, for the calendar year 2000, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the Internal Revenue Service (IRS), which said U.S. Individual Income Tax Return, Form 1040, he did not believe to be true and correct as to every material matter in that the return reported $247,977 in "Gross receipts or sales" on line 1 of schedule C, whereas, the Defendant, CHARLES D. JONES then and there well knew and believed that "Gross receipts or sales" for 2000 were substantially higher, all in violation of Title 26, United States Code, Section 7206(1) [26U.S.C. 7206(1)]."

Count 2 of the indictment of Jones for "making and subscribing a false return" said the following:

"On or before the 29th day of October, 2003, in the Western District of Louisiana and elsewhere, the Defendant, CHARLES D. JONES, did willfully make and subscribe an Amended U.S. Individual Income Tax Return, Form 1040X, for the calendar year 1999, which was verified by a written declaration that it was made under the penalties of perjury and was filed with the IRS, which said Amended U.S. Individual Income Tax Return, Form 1040X, he did not believe to be true and correct as to every material matter in that the amended return reported "Adjusted gross income" of $171,000 on line 1, whereas, the Defendant, CHARLES D. JONES, then and there will knew and believed that "Adjusted gross income" for 1999 was substantially higher, all in violation of Title 26, United States Code, Section 7206(1) [26U.S.C. 7206(1)]."

Count 3 of the indictment of Jones for "tax evasion" said the following:

"Beginning on or about the 19th day of July, 1995, and continuing until on or about the 19th day of December, 2003, in the Western District of Louisiana and elsewhere, CHARLES D. JONES, did willfully attempt to evade and defeat a large part of the income tax due and owing by him to the United States of America by taking affirmative acts of evasion, including

• Defendant converted a legal fee, in the form of a check dated July 19, 1995 in the amount of $108,219.81, into cashier's checks and cash (hereafter Fee 1).

• Defendant converted a legal fee, in the form of a check dated March 31, 1999 in the amount of $554,504.50, into cashier's checks and cash (hereafter Fee 2),

• Defendant converted a legal fee, in the form of a check dated August 31, 1999 in the amount of $90,000, into cashier's checks and cash (hereafter Fee 3),

• On or about the 2nd day of November, 1999, Defendant used cashier's checks from Fee 3 to purchase two lots in North Pointe Plantation Subdivision in Ouachita Parish in the name of a nominee.

• On or about the 31st day of December, 1999, Defendant exchanged three $100,000 cashier's checks from Fee 2 into three other $100,000 cashier's checks,

• On or about the 14th day of April 2000, Defendant used two of the $100,000 cashier's checks to purchase a certificate of deposit in the amount of $200,000,

• On or about the 23rd day of July, 2001, Defendant used a nominee to purchase property located at 5710 Bon Aire Drive, Monroe, Louisiana for $54,000,

• On or about the 21st day of November, 2001, Defendant obtained a $200,000 loan using the $200,000 certificate of deposit as collateral,

• Between February 19, 2002, and August 4, 2003, Defendant reimbursed the nominee over $300,000 for construction of the home at 5719 Bon Aire Drive,

• Executed an act of exchange dated November 19, 2003 transferring the home at 5710 Bon Aire Drive from the nominee to Defendant and his wife.

• Executed an act of cash sale dated December 19, 2003 transferring the home at 5710 Bon Aire Drive from the nominee to Defendant's wife.

For the purpose of evading payment of taxes due and owing to the United States of America in the excess of $190,000, all in violation of Title 26, United States Code, Section 7201 [26 U.S.C. 7201]."

When contacted earlier Thursday, Jones' attorney, Mike Small of Alexandria, said, "I have represented Mr. Jones for some time in connection with the investigation which resulted in the indictment handed down today charging two counts of filing false tax returns and one count of tax evasion. Mr. Jones and I are obviously disappointed that the indictment was returned, but are confident that a fair jury, after hearing all the evidence and not just the prosecutor's version, will return verdicts of not guilty on all counts."

Small said he expects to receive a summons in the next several days directing Jones to appear in federal court in Monroe.

"On that occasion we will enter pleas of not guilty and begin earnest trial preparations with a view to clearing the good name which Mr. Jones has earned through years of dedicated public service to the constituents of his senatorial district," Small said.

If convicted, Jones faces up to five years in prison, a $250,000 fine, or both, for each count.

An indictment is an accusation and a defendant is presumed innocent unless and until proven guilty.

The case was investigated by the Internal Revenue Service and is being prosecuted by assistant U.S. Attorneys Joe Jarzabek and Mignonne Griffing.

An attorney, Jones served in the Legislature from 1976-2008. He spent a number of years in the House of Representatives before being elected to represent District 34 in the Senate in the 1990s. District 34 stretches from Monroe's southside to the Delta parishes along the Mississippi River from East Carroll to Concordia.

In his last term in the Senate, or from 2004-2008, Jones served as chairman of the Senate committee that oversees eithics legislation.

Throughout his years of public service, Jones came under fire for his and his family's dealings with organizations whose purpose was to help the poor. On more than occasion, Jones faced complaints before the state Ethics Board.
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