United States of America v Kent Hovind and Jo Hovind

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United States of America v Kent Hovind Indictment
United States District Court for the Northern District of Florida, June 2006
The United States of America v Kent Hovind and Jo Hovind was a federal court case started on October 18, 2006 and concluded on November 2, 2006. It concerns 58 federal counts surrounding taxes owed to the government from Kent Hovind's church businesses. The indictment from PACER is available here http://upload.wikimedia.org/wikipedia/commons/6/61/HovindIndictment.pdf

UNITED STATES OF AMERICA

v.

KENT E. HOVIND
and
JO D. HOVIND

———————————————————

THE GRAND JURY CHARGES:

COUNTS ONE THROUGH TWELVE


A. INTRODUCTION

At all times relevant to this indictment:

1. In general, employers must withhold, deposit, report, and pay federal income tax as well as Social Security and Medicare taxes from employee wages. The amount of federal income tax withheld is based on an employee’s martial status and the withholding allowances as reported by the employee to the employer on the Internal Revenue Service (IRS) Form W-4. Federal Insurance Contributions Act (FICA) taxes provide a federal system of old age, survivors, disability, (Social Security tax) and hospital insurance (Medicare tax). Employers are required to withhold FICA taxes from employee’s wages and pay a matching amount of these taxes. During the times relevant to this indictment, the employee tax rate for Social Security was 6.2% of the employees’ gross wages which was withheld from the employees’ wages, and the employer tax rate was also 6.2% (12.4% total). The employee tax rate for Medicare was 1.45% of the employees’ gross wages, which was withheld form the employees’ wages and the employer tax rate for Medicare was also 1.45% (2.9% total). Employers were required to deposit federal income tax withheld along with FICA taxes by submitting quarterly payments to the IRS. Each quarter, all employers who paid wages subject to federal income tax withholding and FICA taxes were required to file Form 941, Employer’s Quarterly Federal Tax Return, by the last day of the month that follows the end of the quarter. This return reported the among of federal income tax and FICA tax withheld from employee wages as well as the employer’s share of FICA tax due and owing.

2. KENT E. HOVIND owned and operated “Creation Science Evangelism Enterprises/Ministry” (“CSE”), located in Pensacola, Florida. As part of CSE, KENT E. HOVIND operated “Dinosaur Adventure Land,” a children’s theme park on 5800 North Palafox Street in Pensacola, Florida which includes rides, a museum and science center. In addition KENT E. HOVIND, through CSE sold literature, videos, CDs, and other materials, and provided lecture services and live debates for a fee.

3. KENT E. HOVIND employed or caused to be employed salaried and hourly-wage workers at CSE and the various related business entities he controlled (hereafter referenced collectively as “CSE”).

4. As the owner/operator of CSE and its related entities, KENT E. HOVIND was responsible for the preparation of employee wages and withholding of federal income tax and FICA tax from employees’ bi-weekly paychecks. KENT E. HOVIND was likewise responsible for paying federal income tax and FICA tax withheld to the Internal Revenue Service (IRS) and filing the appropriate IRS Forms 941, Employer’s Quarterly Tax Returns, for SE, reporting amounts withheld and the employer’s share of the FICA tax to the IRS.

5. KENT E. HOVIND failed to obtain W-4 information from CSE employees and failed to withhold taxes from employee wages.

6. KENT E. HOVIND failed to file IRS Forms 941, Employer’s Quarterly Tax Returns, reporting federal income tax FICA tax from employee wages to the IRS.

7. When employers failed to withhold taxes from employee wages, the IRS calculated the income tax withholding rate, and thus income taxes due and owing at 20%.


B. CHARGE

That on or about the dates specified below, in the Northern District of Florida, the defendant,

KENT E. HOVIND

a resident of Pensacola, Florida, who owned and operated CSE in Pensacola, Florida and as such, was the person responsible for collecting and paying over federal income tax and FICA tax for CSE, and who, during the quarters of the tax years specified below, did willfully fail to deduct, collect, truthfully account for and pay over to the IRS federal income tax and FICA tax from the total taxable wages of CSE employees which were due and owing to the United States of America, in the approximate amounts enumerated below, by failing to file the appropriate IRS Form 941, Employer’s Quarterly Federal Tax Return for CSE and on the due dates, and failing to withhold and pay federal income tax and FICA tax to the IRS.

COUNT QUARTER ENDING DUE DATE OF RETURN TAX DUE AND OWING
ONE March 31, 2001 April 30, 2001 $29,400
TWO June 30, 2001 July 31, 2001 $33,757
THREE September 30, 2001 October 31, 2001 $37, 482
FOUR December 31, 2001 January 31, 2001 $31, 987
FIVE March 31, 2002 April 30, 2002 $40, 889
SIX June 30, 2002 July 31, 2002 $40, 889
SEVEN September 30, 2002 October 31, 2002 $40, 889
EIGHT December 31, 2002 January 31, 2003 $40, 889
NINE March 31, 2003 April 30, 2003 $36,463
TEN June 30, 2003 July 31, 2003 $44,967
ELEVEN September 30, 2003 October 31, 2003 $46,653
TWELVE December 31, 2003 January 31, 2004 $49,553

All in violation of Title 26 United States Code, Section 7202.

COUNTS THIRTEEN THROUGH FIFTY-SEVEN

That in the dates specified below, in the Northern District of Florida, the defendants,

KENT E. HOVIND
and
JO D. HOVIND

knowingly and for the purpose of evading reporting requirements of Section 5313(a) of Title 31, United States Code, and the regulations promulgated thereunder, structured, assisted in structuring, and caused to be structured the following transactions, each transaction being a cash withdrawal from AmSouth Bank, a domestic federally-insured financial institution:

COUNT DATE OF CHECK AMOUNT WITHDRAWN
THIRTEEN July 20, 2001 $9,500
FOURTEEN July 23, 2001 $9,500
FIFTHTEEN July 26, 2001 $9,500
SIXTEEN August 2, 2001 $9,500
SEVENTEEN August 10, 2001 $9,500
EIGHTEEN August 23, 2001 $9,500
NINETEEN August 31, 2001 $9,500
TWENTY September 7, 2001 $9,500
TWENTY-ONE September 11, 2001 $9,500
TWENTY-TWO September 18, 2001 $9,500
TWENTY-THREE September 19, 2001 $9,500
TWENTY-FOUR September 27, 2001 $9,500
TWENTY-FIVE October 04, 2001 $9,500
TWENTY-SIX October 10, 2001 $9,500
TWENTY-SEVEN October 19, 2001 $9,500
TWENTY-EIGHT October 23, 2001 $9,600
TWENTY-NINE November 2, 2001 $9,600
THIRTY November 7, 2001 $9,600
THIRTY-ONE November 19, 2001 $9,600
THIRTY-TWO November 28, 2001 $9,600
THIRTY-THREE December 5, 2001 $9,600
THIRTY-FOUR December 11, 2001 $9,600
THIRTY-FIVE December 28, 2001 $9,600
THIRTY-SIX December 31, 2001 $9,600
THIRTY-SEVEN January 11, 2002 $9,600
THIRTY-EIGHT January 18, 2002 $9,600
THIRTY-NINE January 22, 2002 $9,600
FORTY February 2, 2002 $9,600
FORTY-ONE February 13, 2002 $9,600
FORTY-TWO February 20, 2002 $9,600
FORTY-THREE February 26, 2002 $9,600
FORTY-FOUR March 6, 2002 $9,600
FORTY-FIVE March 8, 2002 $9,600
FORTY-SIX March 11, 2002 $9,600
FORTY-SEVEN March 25, 2002 $9,600
FORTY-EIGHT April 19, 2002 $9,600
FORTY-NINE May 10, 2002 $9,600
FIFTY June 13, 2002 $9,600
FIFTY-ONE July 1, 2002 $9,600
FIFTY-TWO July 17, 2002 $9,600
FIFTY-THREE July 22, 2002 $9,600
FIFTY-FOUR July 29, 2002 $9,600
FIFTY-FIVE August 2, 2002 $9,600
FIFTY-SIX August 6, 2002 $9,600
FIFTY-SEVEN August 9, 2002 $9,600

All in violation of Title 31, United States Code, Sections 5324(a)(3) and 5324(d), Title 31, Code of Federal Regulations, Section 103.11, and Title United States Code, Section 2.

COUNT FIFTY-EIGHT

1. Part A of Counts One through Twelve is hereby realleged as if fully set forth herein.

2. That between in or about March 1996 up to and including the dates of the return of this indictment, in the Northern District of Florida, the defendant,

KENT E. HOVIND,

did corruptly endeavor to obstruct and impede the due administration of the internal revenue laws by acts which include the following:

a. Filing a petition for bankruptcy, and falsely listing the IRS as his only creditor, for the sole purpose of discharging this debt and forcing the IRS to release seized property;

b. Filing a false and frivolous lawsuit against the IRS in which he demanded damages for criminal trespass and other false allegations during the IRS execution of a lawful court-issued search warrant;

c. Filing a complaint for a preliminary injunction against an investigation IRS special agent and the Commissioner of the IRS;

d. Making threats of harm to those investigating him and to those who may consider cooperating with their investigation;

e. Filing a false complaint against investigating IRS agents with the Treasury Inspector General for Tax Administration;

f. Filing a criminal complaint against investigating IRS special agents falsely alleging, among other things, false arrest, false imprisonment, excessive use of force, and theft or property;

g. Destroying records; and,

h. Paying his employees in cash and labeling them “missionaries” rather than employees to avoid payroll tax and Federal Insurance Contributions Act requirements.

All in violation of Title, United States Code, Section 7212(a).

CRIMINAL FORFEITURE

1. The allegations contained in Counts Thirteen through Fifty-Seven of this Indictment are hereby realleged and incorporated by reference for the purpose of alleging forfeitures to the United States.

2. Upon convictions of any of the violations alleged in Counts Thirteen through Fifty-Seven of this Indictment, the defendants,

KENT E. HOVIND
and
JO D. HOVIND,

Shall forfeit to the United States, pursuant to Title, United States Code, Section 982(a)(1) and Title 31, United States Code, Section 5317(c), any and all property, real and personal, involved in the offense alleged in Counts Thirteen through Fifty-Seven and any property traceable thereto.

3. If any of the property described above as being subject to forfeiture, as a result of any act or omission of the defendants:

a. cannot be located upon the exercise of due diligence;

b. has been transferred or sold to, or deposited with, a third person;

c. has been placed beyond the jurisdiction of the Court; and,

d. has been substantially diminished in value; or has been commingled with other property which cannot be subdivided without difficulty; it is the intent of the United States pursuant to Title 18, United States Code, Section 982(b)(1) and Title, United States Code Section 5317(c)(1)(B), to seek forfeiture of any other property of said defendants up to the value of the above-described property.

All in violation of Title 18 United States Code, Section 982(a)(1) and Title 31, Untied States Code, Section 5217(c).

Outcome[edit]

On November 2, 2006, Hovind and his wife, Jo, were found guilty by a jury on all counts. On January 19, 2007, Kent was sentenced to 10 years in prison, three years of probation after his sentence is served, and $640,000 in restitution.[1] He had been previously ordered to forfeit $430,400 and faced a maximum of 288 years in prison.[2]

See also[edit]

References[edit]

  1. "10 Years for 'Dr. Dino'", Pensacola News Journal, January 19, 2007
  2. "Dr. Dino, wife guilty," Pensacola News Journal. November 2, 2006

External links[edit]