A Madison woman was sentenced Friday to one year and one day in federal prison for avoiding paying more than $ 3 million in taxes on money taken from the proceeds of video game machines in bars.
Mary Lavine, 65, pleaded guilty to conspiring to defraud the Internal Revenue Service and filing a false 2018 corporate income tax return for Bullseye Inc., a company she co-owned, said Scott Blader, United States Attorney for the Western District of Wisconsin. in a report.
U.S. District Judge James Peterson also fined Lavine $ 75,000, ordered him to serve two years of supervised release after jail, and ordered him to pay restitution of $ 834,770 to the IRS. and $ 1,927,853 to the Wisconsin Department of Revenue.
According to a sentencing memorandum filed by prosecutors in January, the one-year and one-day sentence was requested by prosecutors and Lavine’s lawyer.
Bullseye is a Madison-based coin-operated music and entertainment games sales company. Lavine admitted to contracting bar owners to place video game machines in their businesses and then share the profits with the owners of bars, Blader said.
Different bar owners had different profit-sharing agreements with Bullseye, and Lavine admitted that some had agreed to skim the funds generated by the machines and not report all funds to the IRS or the State Department of Returned. The underreporting prompted Bullseye to evade corporate income tax, as Bullseye and bar owners evaded Wisconsin sales and income taxes, Blader said.