Virginia Man Sentenced to More than Six Years in Prison for Tax Scheme

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A Virginia businessman has been handed a 78-month prison sentence for his involvement in a tax scheme that involved evading the payment of employment taxes, filing false tax returns, and obstructing the Internal Revenue Service (IRS). James C. Jones Jr., the owner and operator of Lifeline Ambulance Service Inc., was responsible for paying approximately $200,000 in Social Security, Medicare, and income taxes withheld from his employees’ wages to the IRS between January 2008 and December 2009.

Upon failing to fulfill his tax obligations, Jones falsely claimed that he lacked the assets necessary to settle his tax payments. However, investigations revealed that he owned multiple Caribbean beachfront condominiums, maintained several foreign bank accounts, and possessed a collection of classic “muscle” cars. To further hinder the IRS’s collection efforts, Jones filed false tax returns from 2013 to 2018, omitting rental income from his Caribbean properties and claiming fraudulent deductions.

The tax loss caused by Jones’s actions amounted to at least $1.5 million. In addition to the prison sentence, Jones has been ordered to serve three years of supervised release, pay a fine of $250,000, and provide $394,508 in restitution to the United States. The costs of the prosecution will also be incurred by Jones.

The case was investigated by the IRS Criminal Investigation Division’s Washington D.C. Field Office, with trial attorneys from the Justice Department’s Tax Division and the assistance of the U.S. Attorney’s Office for the Western District of Virginia. Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division, U.S. Attorney Christopher Kavanaugh for the Western District of Virginia, and Special Agent in Charge Kareem Carter of the IRS Criminal Investigation Division’s Washington D.C. Field Office announced the conclusion of the case.

This sentencing serves as a reminder that tax evasion and filing false tax returns are serious offenses with severe consequences. The DOJ and IRS remain vigilant in their efforts to hold individuals accountable for their actions and to protect the integrity of the tax system.

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