Allen County, Kentucky man sentenced to federal prison for tax evasion

Date: Nov. 7, 2024

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Bowling Green, KY - An Allen County, Kentucky man was sentenced this week to 1 year and 3 months in federal prison for tax evasion.

U.S. Attorney Michael A. Bennett of the Western District of Kentucky and Special Agent in Charge Karen Wingerd of the Internal Revenue Service Criminal Investigation (IRS-CI), Cincinnati Field Office made the announcement.

According to court documents, John Paul Cates was sentenced to 1 year and 3 months in federal prison, followed by three years of supervised release, for tax evasion. The Internal Revenue Service found that Cates evaded employment taxes due and owing by Trinity Steel Works, LLC, a corporation in Scottsville, Kentucky. Cates was also ordered to pay $811,312.14 in restitution.

There is no parole in the federal system.

The IRS-CI investigated the case.

Assistant U.S. Attorney Madison Sewell prosecuted this case.

IRS-CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. IRS-CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.