The owner of a Kirkland interior design business was indicted April 6 in a nearly 20-year scheme to avoid paying several hundred thousand dollars in income taxes, U.S. Attorney Annette L. Hayes announced.
Daniel Nix, 56, was indicted by the grand jury on 13 counts of tax evasion, 11 counts of providing fictitious financial obligations and one count of corrupt interference with the administration of the Internal Revenue Code. A second defendant, Karen Street, 58, also of Kirkland, was indicted on two counts of providing fictitious financial obligations.
Arraignment on the indictments was scheduled for April 20 (after Reporter deadline).
According to the indictments, Nix operates Dannix Design, an interior design firm for medical offices. As detailed in the indictment, as early as 1998 and from 2000 to 2007, Nix refused to pay his income taxes, which over that time totaled more than $340,000. Nix set up shell companies to hide his income and assets, filed false bankruptcy claims and filed false claims against the government.
For tax years 2010-2013, Nix continued to use a variety of strategies to hide his income and avoid any tax assessments. In February 2013, Nix sent 11 fake money orders to the IRS to make it appear he was paying his tax obligations. The total face value of the eleven fake money orders exceeded $1 million. Street, his long-time partner, also submitted two fake money orders as payment for back taxes she owed.
Tax evasion is punishable by up to five years in prison and a $250,000 fine. Presentation of fictitious financial instruments is punishable by up to 25 years in prison and a $250,000 fine. Attempts to interfere with the administration of the tax code is punishable by up to three years in prison and a $5,000 fine.
The charges contained in the indictment are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Seungjae Lee.
This is taken from a release from the U.S. Department of Justice.
