CHARLESTON, W.Va. -- A former mine company president who was taking company money for personal use will face federal prison after admitting her role in a scheme to evade federal taxes.
Brandy M. Horvath, 39, of Mercer County pleaded guilty to federal income tax fraud Wednesday before U.S. District Judge Irene Berger.
The former president of New West Virginia Mining Co. also pleaded guilty on behalf of the Wyoming County-based company to structuring cash withdrawals from the company bank account to avoid reporting them to the IRS, according to a statement issued by U.S. Attorney Booth Goodwin's office.
James Trent, 55, of Wyoming County, named Horvath company president and sole officer in 2009. Trent, her longtime boyfriend, used her to conceal his interest in the company, according to the U.S. Attorney's office.
Horvath started cashing checks written on company's bank accounts for her and Trent's personal use soon after New West Virginia Mining began mining coal for Riverside Energy in McDowell County.
She lied on the withdrawal slips, stating they were for business expenses when they were not, according to court records. The money should have been attributed to her as officer compensation, but was not. She did not file an income tax return for 2008.
Horvath lied on a 2008 tax return, filed in May 2010, when she failed to disclose how much of the company's money she and Trent had taken, court records said.
Acting on the company's behalf, she also began structuring cash withdrawals from the company's accounts from October 2007 to November 2010, intentionally taking out less than $10,000 at each withdrawal to avoid the bank's reporting requirements to the IRS.
Horvath took at least $503,648 from the company's account at First Community Bank in Wyoming County and $227,933 from the account at Bank of America in Wytheville, Va., the release said.