Couple sentenced for not paying taxes, ordered to pay IRS $1.4 million

Published: 2012-07-11 16:12:08
Author: 69 News

 A Lehigh County couple were sentenced Tuesday for their conspiracy to defraud the United States by not paying their federal taxes.

Paul F. Basile, 55, was sentenced to 78 months in federal prison; Barbara Basile, 54, was ordered to serve 63 months behind bars, officials said.

U.S. District Judge Paul Diamond also ordered the couple to pay restitution to the IRS in the amount of $1,417,916.

 

The Orefield couple were convicted by a jury on December 22, 2011.

In addition to the conspiracy count, Paul Basile was convicted of five counts of tax evasion and two counts of filing false returns, and Barbara Basile was convicted of two counts each of tax evasion, filing false returns and failing to file tax returns, officials said.

The Basiles, who for more than 15 years challenged the legitimacy of the tax laws, owned a chiropractic business called Lehigh Valley Non-Surgical Inc. ("LVNS") and earned income through payments from patients and health insurance companies, officials said.

According to evidence federal prosecutors presented during the trial, between early 2003 and December 31, 2005, Paul and Barbara Basile removed themselves from LVNS’s payroll system and paid themselves with weekly checks from LVNS, or another entity they controlled, called Hamilton Health Management, in order to avoid paying income and payroll taxes.

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