On Monday, United State Attorney Mark A. Yancey announced that a Oklahoma City man had pleaded guilty to filing a false federal income tax return for the 2012 tax year. Francis Michael Bostick also admitted to failing to report more than $325,000 of income. A federal grand jury returned an indictment against the defendant on June 6, 2017. At that time, he was charged with four counts of false statements on tax returns.
The charges related to the 2010, 2011, 2012 and 2013 tax years. At the time, Bostick was the owner and operator of an oil field service company called Bostick Services Corporation. It was also alleged that one of Bostick’s customers, Pioneer Trucking, frequently purchased “tank bottoms” from the company. Tank bottoms are heavier substances that settle to the bottom of wastewater tanks.
It was alleged that Bostick instructed Pioneer Trucking to pay him directly, instead of paying his company. Bostick supposedly received several payments of $9,000 in separate checks, which were cashed instead of deposited into a bank account. In return, Bostick’s CPA never obtained this information and the income went unreported.
The indictment claimed that Bostick omitted the following amounts.
- Over $250,000 in 2010
- Over $350,000 in 2011
- Over $325,000 in 2012
- Over $275,000 in 2013
During Bostick’s plea hearing, he admitted to filing a false tax return for 2012. He confessed to concealing $325,000 in income, which was diverted by cashing checks from Pioneer Trucking. He admitted that he was aware he needed to report his entire income, but intentionally diverted the money and filed the false return anyway.
Bostick admitted that his actions led to the Internal Revenue Service losing between $250,000 to $550,000 in tax losses. He has agreed to pay restitution for tax years 2010, 2011, 2012 and 2013. At his sentencing, the defendant will face a maximum of three years in prison.