DENVER – Gary Neuger, age 56, and Beth Neuger, age 54, of Colorado Springs, Colorado were sentenced last week by U.S. District Court Judge Marcia S. Krieger for criminal obstruction and filing false income tax returns, United States Attorney John Walsh and Internal Revenue Service – Criminal Investigation Special Agent in Charge Sean P. Sowards announced. Gary Neuger was sentenced to serve 24 months in federal prison, followed by 1 year of supervised release, along with paying $393,791.20 in restitution to the IRS. Beth Neuger, Gary’s wife, was sentenced to serve 3 years probation, with the first 10 months in home detention. She was also ordered to pay $31,563.01 in restitution to the IRS.
Gary Neuger and Beth Neuger both pled guilty on August 19, 2011 to the indictment returned by the federal grand jury on November 3, 2010. The indictment charged Gary Neuger with nine counts of filing false tax returns and one count of interference with the administration of the Internal Revenue laws and charged Beth Neuger with six counts of filing false tax returns. Gary Neuger pled guilty to one count of filing a false income tax return and one count of interference with the administration of the Internal Revenue laws on August 19, 2011. Beth Neuger pled guilty to one count of filing a false income tax return on August 19, 2011.
According to the indictment as well as the plea agreement, beginning in 1997, Gary Neuger and Beth Neuger stopped paying federal income tax. When the IRS began attempting to collect the outstanding taxes, Gary Neuger sent threatening letters to the IRS and filed several lawsuits against IRS revenue agents in state and federal court. Then in February, 2005, Beth Neuger filed a series of income tax returns signed under penalties of perjury stating she made zero income and owed zero in income taxes even though she worked as a nurse at Memorial Hospital at the time.
Subsequently in April, 2005, Gary Neuger filed a series of income tax returns stating he made zero income and owed zero in income taxes while working as a psychologist in a private practice. According to the plea agreement, after being contacted by the Internal Revenue Service in 2009, both Gary Neuger and Beth Neuger admitted filing false income tax returns.
“Taxpayers thinking about participating in fraudulent tax schemes, including failing to report all forms of income, should stop in their tracks and look at the consequences of taking the next step,” said Sean P. Sowards, Special Agent in Charge, Internal Revenue Service – Criminal Investigation, Denver Field Office. “Those consequences include going to prison, being branded a convicted felon for the rest of their lives, and paying back all the taxes owed plus steep penalties and interest.”
This case was investigated by the Internal Revenue Service – Criminal Investigation.
The defendants were prosecuted by Assistant United States Attorney Suneeta Hazra.