KANSAS CITY, KAN.– A Kansas businessman was sentenced to one year and a day in prison for his involvement in falsifying his company’s financial statements.
In January 2022, K. Kevin James, 65, of, Lenexa pleaded guilty to one count of wire fraud. James was a co-owner of KC United LLC, a holding company for multiple construction companies in Kansas City, Kansas, including Miller Paving LLC. According to court documents, James admitted that from 2008 to 2010, he coordinated with his accountant to manipulate Miller Paving’s quarterly financial records to falsely reflect profit to maintain the company’s banking and bonding relationships.
Also, James failed to make the payroll taxes payments for three of his companies to the Internal Revenue Service (IRS) totaling approximately $5,282,509.
As part of his sentence, the court ordered James to pay more than $6 million in restitution to the IRS and the Bank of Blue Valley
“Employment taxes are an essential part of doing business. Business owners and their advisors have a responsibility to collect and turn over all taxes withheld to the IRS,” said IRS Criminal Investigation Acting Special Agent in Charge Thomas Murdock. “Mr. James willfully conspired to falsify financial statements to avoid paying his share of his company’s employment taxes. The sentence reinforces the commitment of IRS-CI and its law enforcement partners to bringing tax cheats to justice.”
IRS-Criminal Investigation, the Federal Bureau of Investigation (FBI), the U.S. Department of Labor, and the Office of the Special Inspector General for the Troubled Asset Relief Program (SIG-TARP) investigated the case.
Assistant U.S. Attorney Jabari Wamble prosecuted the case.
USAO - Kansas;
Department of Labor OIG