SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Al T. Hughes, age 60, of Scranton, Pennsylvania, was sentenced by United States District Court Judge James M. Munley to 15 months’ imprisonment followed by a three-year term of supervised release and a $4,000 fine, for tax evasion.
According to United States Attorney David J. Freed, Hughes diverted approximately $892,000 in corporate receipts to his personal benefit, and failed to report the diverted receipts as income on his federal tax returns. The resulting tax loss to the United States is approximately $231,349.
Hughes began diverting corporate receipts in 2009 and continued through 2014, and cashed hundreds of customer checks, intended for payment of funeral home services, at various financial institutions, including a check cashing service in Scranton.
Hughes diverted corporate receipts from four area funeral homes, including the Thomas J. Hughes Funeral Home, the Eagan-Hughes Funeral Home, the McGoff-Hughes Funeral Home, and the Davies & Jones Funeral Chapel.
Judge Munley also ordered Hughes to pay $231,349 in restitution to the IRS. Hughes is to surrender to the Bureau of Prisons on September 25, 2019.
“Paying fairly assessed taxes is a solemn obligation of citizenship,” said U.S. Attorney Freed. “Al Hughes brazenly shirked that obligation and stole from all of us. Working together with our partners at IRS - Criminal Investigation we will continue to vigorously prosecute these cases.”
“Al T. Hughes stole from the American public when he failed to pay his fair share of taxes,” said Guy Ficco, IRS Criminal Investigation Special Agent in Charge. “Those contemplating similar crimes should take note of the sentence handed down today. IRS-CI will continue to protect the integrity of the tax system by ensuring everyone pays the right amount of tax."
The investigation was conducted by the Internal Revenue Service Criminal Investigation– Scranton Office. Assistant United States Attorney Michelle Olshefski prosecuted the case.