An Olathe man pleaded guilty Monday to filing a false tax return, U.S. Attorney Stephen McAllister said. The defendant agreed to pay more than $450,000 in restitution.
Daniel Forster, 58, Olathe, Kan., pleaded guilty to causing a false tax return to be submitted to the Internal Revenue Service. In his plea, he admitted the crime occurred while he was one of three shareholders who owned an S corporation located in Olathe.
Forster was responsible for the financial operations of the business, including overseeing corporate books and records and submitting tax information to a professional tax preparer.
Forster used funds belonging to the business to pay personal expenses such as credit card payments and then falsely represented those payments as deductible expenses.
Sentencing will be set for a later date. He faces a penalty of up to three years in federal prison and a fine up to $250,000. McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Leon Patton for their work on the case.