Tuesday, February 7, 2017

Medical Device CEO by Sacramento Federal Judge Sentenced to One Year in Prison for Tax Evasion

On December 2, 2016, Briant Benson, a President and CEO of multiple medical device companies, was sentenced in Sacramento, California by U.S. District Judge Garland E. Burrell Jr. to 12 months and one day in prison for tax evasion. 

The year and one day sentences is more favorable that a one year sentence since it will qualify Mr. Benson for a 6 month sentence and halfway house. This sentence followed Mr. Benson's guilty plea in August.

According to court documents, during the years 2004 through 2006, Mr. Benson failed to file tax returns or pay any personal income tax to the Internal Revenue Service, despite receiving at least $2 million dollars in income as the President and CEO of multiple medical device companies. One of them Bentec Medical makes tubing and catheters, among other things, and the company was not involved in the allegations. 

Further, it was alleged that Mr. Benson used corporate funds to purchase homes, buying in jewelry and furniture, and pay for expensive travel accommodations such as luxury hotels, private jets, and limousines. Benson also used corporate funds to pay over half a million dollars in gambling debt. The government alleged that Benson’s failure to report his personal income and pay taxes due and owing on that income resulted in a tax loss of at least $249,000.

Attorney Commentary: One of the issues to learn from this case is not to be interviewed by IRS officers without counsel or to decline an interview where there is a pending investigation unless you understand the scope of the investigation. The government alleged that when Mr. Benson was confronted by IRS officers, he spoke to them and denied using corporate funds for his personal use.

Posted by Tracy Green, Esq.
Email: tgreen@greenassoc.com
Office: 213-233-2260


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