Press release
A 65-year-old Athens, Texas, man has been sentenced for federal income tax violations, announced U.S. Attorney John M. Bales on Wednesday.
Joseph A. Masso pleaded guilty on Dec. 12, 2014 to making and subscribing to a false tax return for the calendar year 2011 and was sentenced to 15 months in federal prison today by U.S. District Judge Leonard E. Davis. Masso was also ordered to pay restitution of more than $900,000 to the Internal Revenue Service.
According to information presented in Court, Masso formed a Texas limited liability company known as Lone Star Western & Casual LLC in December 2007. Lone Store operated retail clothing stores in Athens, Corsicana, and Waxahachie, Texas. For tax years 2009-2011, Masso falsely understated the gross receipts for these businesses on his IRS Form 1040 Schedule C by more than $5 million. As a result, he falsely understated his tax liability for the three tax years by approximately $950,000.
Masso has already agreed to pay a civil fraud penalty of more than $450,000. Also, Masso agreed in a related civil action to forfeit $800,000 to the United States. The funds were originally seized during the execution of federal seizure warrants.
This case was investigated by the Internal Revenue Service-Criminal Investigation and was prosecuted by Assistant U.S. Attorney Frank Coan.