Local News

S.C. businessmen charged with tax fraud

Posted February 5, 2010

Map Marker  Find News Near Me

— Two South Carolina businessmen were arrested in Raleigh Thursday on felony charges following indictments handed down by a Wake County grand jury.

John M. June, Jr., 37, of 240 Journeys End Road, Darlington, S.C., and Larry Phillips, 62, of 6902 Flat Creek Rd., Kershaw, S.C., were each charged with one count of attempting to evade or defeat tax, two counts of obtaining property by false pretenses and one count of conspiracy to commit obtaining property by false pretenses.

The indictments allege that June and Phillips, acting as principals of and agents for Tobaccoville USA, Inc. and J & E Distributors, Inc. overstated sales of cigarettes for 2005 and understated sales of cigarettes for 2006 to take advantage of two distinct but intertwined changes in North Carolina.

The laws took effect Sept. 1, 2005 – the increase in the Tobacco Products Excise Tax – and Jan. 1, 2006 – the end of the allocable share release provision under the North Carolina Tobacco Reserve Fund and Escrow Compliance Statutes.

The indictments also allege that June and Phillips fraudulently conspired to obtain money, a release of money, a fraudulently reduced tax liability, and non-contraband status of its cigarettes from the state of North Carolina and others, valued at approximately $6,030,085.

June and Phillips appeared before a Wake County magistrate and each was released after posting a $100,000 bond.

The charges against these individuals resulted from an investigation by special agents with the Department of Revenue’s Criminal Investigations section, the State Bureau of Investigation and an investigator with the Wake County District Attorney’s Office.

2 Comments

This story is closed for comments.

Oldest First
View all
  • luckn4u2 Feb 5, 2010

    It's not only the state rounding up the political and non political crook's,it's mostly the fed's,you didnt see all this action until the Demorats took office back in the day and now the squealer's are opening up..Look who their going after,crooked demorats and it's all in just cause..Wasteing and using our tax dollar's to gain greed and fortune,which turns out to be mis arrogance and misfortune.Thank you Fed's..

  • samiam1244 Feb 5, 2010

    I can say one thing somebody in law enforcement is working overtime to round up all the crook's and corruption in this State. who will be next?..Lawyers, Doctors, politions, even Law Enforcements themselves are being exposed, it's about time.