SAN FRANCISCO – LAWFUEL – Law News Network – United States Attorney Kevin V. Ryan announced that Martin Harty pleaded guilty on November 6, 2006, to filing false tax returns. This guilty plea is the result of an investigation by IRS-Criminal Investigation.
Mr. Harty , age 50, a resident and citizen of Ireland, was indicted by a federal grand jury on April 3, 1995. He was charged with two counts of filing false tax returns in violation of 26 U.S.C. § 7206(1) Under the plea agreement, Mr. Harty pleaded guilty to both counts.
Mr. Harty lived in the United States and worked as a carpenter in the Bay Area in the 1980s. From July 1987 to March 1988, he was hired as framing subcontractor by a general contractor on a construction project in San Francisco. He was paid $122,350 in 1987 and $146,546 in 1988 by the contractor through a series of seven checks made payable to three bogus entities he created. Harty directed the contractor to make the checks payable to these entities to conceal his receipt of the income from the Internal Revenue Service. These seven checks totaled $268,896 and were cashed by him at a local San Francisco sports bar known as “Pat O’Shea’s Mad Hatter,” which also operated a check cashing service. He admitted in court that he knew the tax returns he filed for the years 1987 and 1988 were false because he failed to report all the income had received from the contractor on his tax returns.
He returned to Ireland before the indictment was returned in 1995 and remained there until September 16, 2006, when he landed in Atlanta, Georgia, on a flight from Ireland on his way to San Francisco. He was arrested at the airport because there had been a warrant for his arrest on file since April 3, 1995. He was incarcerated for 31 days in an Atlanta prison until he was released on a $500,000 bail.
The sentencing of Mr. Harty is scheduled for April 5, 2006, before Judge White in San Francisco. The maximum statutory penalty for each count in violation of 26 U.S.C. § 7206(1) is 3 years and a fine of $250,000. However, any sentence following conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Jay R. Weill is the Assistant U.S. Attorney who is prosecuting the case.
Case #: 95-0147-JSW
A copy of this press release may be found on the U.S. Attorney’s Office’s website at www.usdoj.gov/usao/can.
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All press inquiries to the U.S. Attorney’s Office should be directed to Luke Macaulay at (415) 436-6757 or by email at [email protected]List your legal jobs on the LawFuel Network