THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Sunday, January 28, 1996 TAG: 9601280133
SECTION: LOCAL PAGE: B5 EDITION: FINAL
SOURCE: STAFF REPORT
DATELINE: NORFOLK LENGTH: Short : 37 lines
A Chesapeake businessman pleaded guilty Friday in federal court to conspiracy to commit income tax fraud on more than $250,000 and to pay defense contract kickbacks on heating-oil contracts.
William Bartlett ``Buddy'' Jones, 52, sales manager for Domestic Industries Corp. of Virginia, faces up to five years in prison and a fine up to $250,000 as a result of an Internal Revenue Service investigation.
The guilty plea stems from an ongoing investigation into the sale, delivery and disposal of fuel in connection with government contracts at area military installations, said Helen F. Fahey, U.S. attorney for the Eastern District of Virginia.
The kickback scheme involved inflating the prices of oil purchased from other oil companies, overbilling the government, then sharing profits. Jones admitted receiving $38,490 in 46 payments.
That money was part of a total of $261,146 that Jones did not report on his tax returns for 1990, 1991 and 1992.
The income was profit on three separate schemes including the kickback scheme.
In the other two schemes, Jones issued checks to third parties, then cashed them himself, for more than $190,000 over three years. Also, Jones sold oil totaling $28,743, pocketed the money and did not report it on his income tax returns.
He will be sentenced April 30.
KEYWORDS: INCOME TAX FRAUD TRIAL VERDICT by CNB