A former Branson West business owner pleaded guilty in federal court to filing a false income tax return, paying only $1,000 on earnings of more than $4 million during a five-year period, according to a news release from Beth Phillips, U.S. attorney for the Western District of Missouri.
Randall Pennington, 51, of Houston, Texas, formerly of Branson West, waived his right to a grand jury and pleaded guilty Feb. 14.
Pennington owned Total Balance Orthotics, which sold orthotic shoe inserts in Branson and Reeds Spring. In his plea agreement, Pennington admitted he earned more than $4 million from 2000-04 and owed approximately $318,000 in income and self-employment taxes. During that time, he paid $1,000 in taxes in 2002, the release said.
Pennington pleaded guilty to filing a false 2002 income tax return in 2006, but the plea agreement stipulates his appropriate sentence will be determined based on the total tax harm from 2000-04.
The return filed for 2002 understated Pennington's business and gambling income. In that year, Pennington earned $962,274 in gross income, which resulted in $26,388 in taxes owed.
Pennington admitted in the plea agreement that he only gave his tax return preparer information about two of his seven bank accounts and that he pushed more than $50,000 worth of business receipts through another person's account.
He also used a transposed Social Security number to identify himself to casinos, thereby avoiding showing $23,200 in gambling winnings on his income.
Under federal statutes, Pennington is subject to a sentence of up to three years in federal prison and a fine of up to $250,000. A sentencing hearing will be scheduled after the completion of the presentence investigation by the U.S. Probation Office.
The case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich and was investigated by Internal Revenue Service Criminal Investigation.
Total Balance Orthotics is currently operating in Allen, Texas, with Pennington listed on the the its
Web site's contact page. Pennington was unavailable for comment this morning.[[In-content Ad]]
