Urbana - A former Mattoon, Ill., woman, Rebecca L. Shockley, has been ordered to serve 16 months in federal prison and pay restitution of more than $400,000 for defrauding a local bank and the Illinois Department of Revenue. Chief U.S. District Judge Michael P. McCuskey sentenced Shockley, 63, currently of Bradenton, Fl., yesterday. Shockley was ordered to report on Mar. 7, 2012, to the Federal Bureau of Prisons to begin serving her sentence.
According to court documents, Shockley was co-owner of Quality Truck and Auto (QTA), in Mattoon, Ill., which did business as Cross Country RV Center. Shockley acted as bookkeeper for the business which sold new and used recreational vehicles and related items.
On May 9, 2011, Shockley entered a plea of guilty to one count each of mail fraud and bank fraud. Shockley admitted that from March 2007 to December 2008, she pledged vehicles as collateral to both the bank and another lender. Shockley had entered into the loan agreement, known as a floor plan line of credit, with the bank in mid-1999. According to court documents,
as the business’s financial condition deteriorated, QTA was unable to pay-off the secured loans it had received from the bank and the bank learned that the RVs that were supposed to be collateral
had already been sold and the sales proceeds forwarded to the other lender.
Shockley further admitted that from July 2006 to December 2008, she under-reported the amounts subject to sales tax by $1.8 million. As a result, although QTA collected $249,915 in sales taxes from more than 100 buyers, Shockley admitted that she remitted only $134,812 of the collected sales taxes to the state of Illinois, and kept the remainder for her own use and benefit. In addition, Shockley admitted that she under-reported the taxable retail sales of QTA from 2006 to 2008.
Shockley was ordered to pay a total of $412,028 in restitution, consisting of $279,438 to the bank and $132,590 to the Illinois Department of Revenue.
The charges were investigated by the Federal Bureau of Investigation and the Illinois Department of Revenue. The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller.
SPRINGFIELD - Kenneth R. McQueen, age 64, of Danville, Illinois was issued a summons today to appear before a Vermillion County court on June 8. He was arrested on April 28, 2011 following an investigation by the Illinois Department of Revenue (IDOR), Criminal Investigations /Tax Enforcement Division, for Possession and Sale of Unstamped Cigarettes.
The arrest followed a six week long investigation of McQueen. Agents of IDOR were assisted by the Vermilion County Metropolitan Enforcement Group (VMEG) Unit during the course of the investigation, which included the execution of a search warrant at McQueen’s residence. Agents seized 88 cartons, (880 packs) of unstamped cigarettes, including a large quantity of cigarettes illegally transported from the state of Missouri as well as overseas via the internet to avoid paying the Illinois Cigarette Tax. Tax for one pack of cigarettes in Illinois is 98 cents while in Missouri is 17 cents.
“Honest taxpayers must know that those who cheat on their taxes will be pursued,” said Brian Hamer, Director of Revenue. “Tax fraud and tax evasion cause law abiding Illinois citizens to share a greater tax burden.”
McQueen was arrested and transported to the Vermilion County Sheriff’s Office where he was charged with a Class 4 Felony of Possession/Sale of Unstamped Cigarettes.
Agencies assisting the Illinois Department of Revenue were the VMEG Unit of Vermilion County, Vermilion County State’s Attorney’s Office and the Vermilion County Sheriff’s Office. Illinois Attorney General Lisa Madigan’s office will prosecute the case.
CHICAGO – Katrina R. McAllister, 33, of Chicago, was arraigned Thursday in Cook County Circuit Court on tax fraud charges. Her tax returns were identified by the department’s anti-fraud programs and an investigation by agents of the department’s Bureau of Criminal Investigations alleges that McAllister filed false returns for herself and for others and claimed refunds to which she was not entitled.
McAllister is charged with two counts of Filing Fraudulent Illinois Income Tax Returns and two counts of Willfully Entering False Information on a Tax Return for tax years 2008 and 2009. She was indicted by a Cook County Grand Jury on Oct. 14. Following her court appearance, she was released on $30,000 bond.