PORTLAND, Ore. (AP) - An Oregon City couple who shielded more than $3.8 million in income in a tax evasion case will serve more than three years of probation.
Karl Brady, 59, and Laura Brady, 60, failed to pay $1.4 million in taxes from 2008 through 2015, and must pay that amount in restitution, The Oregonian/OregonLive reported. Karl Brady also pleaded guilty to conspiracy to defraud the United States and conspiracy to commit bank fraud.
The plea agreement called for each of them to plead guilty, according to court records.
Karl Brady was one of three owners and vice president of accounting for Northwest Behavioral Healthcare Inc., a Gladstone-based residential mental health treatment center for adolescents. The trio concealed income from the center for more than a decade, between 2002 and 2015, according to court documents.
The owners in 2002 started to pay a promoter of an illegal tax scheme to help them hide their income from the Internal Revenue Service. They each paid the promoter about $20,000, according to court documents. Each created other companies and accounts and funneled their money into them.
They would meet weekly or monthly to divide money from Northwest Behavioral Healthcare and direct the bookkeeper to issue checks to the other companies to to keep the funds off the radar of the IRS, according to federal prosecutors.
Co-defendants Daniel Mahler, president and chief executive officer of the mental health care provider, and Lyndon Fischer, vice president of marketing, were sentenced to five years of home detention, allowed out only for work with no luxuries allowed.
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