Fayette County Business Owner Pleads Guilty to Filing False Tax Return

PITTSBURGH, Pa. - A resident of Fayette County, Pennsylvania, pleaded guilty in federal court to a charge of willfully filing a false tax return, United States Attorney Eric G. Olshan announced today.

James E. Frey Jr., 54, of Uniontown pleaded guilty to one count before United States District Judge Marilyn J. Horan.

In connection with the guilty plea, the Court was advised that Frey deposited checks from his businesses' customers into his personal bank accounts instead of his businesses' accounts, and kept for himself the proceeds of checks made payable from his companies to other individuals that were never actually sent. Frey's personal income tax returns for years including 2019 were false in that, as Frey knew, they failed to report the income from those checks.

Judge Horan scheduled sentencing for January 14, 2025. The law provides for a total sentence of up to three years in prison, a fine of up to $250,000 or twice the gain or loss from the offense, or both. Under the federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney William B. Guappone is prosecuting this case on behalf of the government.

The Internal Revenue Service - Criminal Investigation conducted the investigation that led to the prosecution of Frey.