Alabama spa operators sentenced for tax fraud - WAFF-TV: News, Weather and Sports for Huntsville, AL

Alabama spa operators sentenced for tax fraud

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BIRMINGHAM, Ala. (AP) - Two men from Hoover have been sentenced to three years in prison and ordered to pay $1.4 million in restitution to the Internal Revenue Service.

Fifty-four-year-old Richard Joseph Smith and 55-year-old Timothy Euell Brown were sentenced Tuesday in Birmingham by U.S. District Judge Abdul Kallon.

The two men operated Richard Joseph SalonSpas in Mountain Brook and Inverness. They pleaded guilty in May to tax fraud conspiracy. They admitted withholding employment taxes from workers between 2006 and 2013 and not paying the money to the IRS.

U.S. Attorney Joyce Vance says the IRS has a tax lien on the home the men purchased in Hoover in 2005 for more than $890,000. She says the house was lavishly furnished with antiques, art and fine china.

The case affected more than 100 employees.

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