U.S. Attorney’s Office
April 20, 2012
District of Montana
Leslie Jean McIntosh Sentenced in U.S. District Court
The United States Attorney’s Office announced that during a federal court session in Missoula on April 20, 2012 before U.S. District Judge Donald W. Molloy, Leslie Jean McIntosh, a 58-year-old resident of Columbia Falls, appeared for sentencing. McIntosh was sentenced to a term of:
Prison: 21 months
Special assessment: $200
Supervised release: three years
McIntosh was sentenced in connection with her guilty plea to two counts of attempt to evade or defeat tax.
In an offer of proof filed by Assistant U.S. Attorney Jessica T. Fehr, the government stated it would have proved at trial the following:
McIntosh was an accountant by training and profession. She was a Certified Public Accountant (CPA) from October 7, 1991 through December 31, 2006. In December 2006, McIntosh’s CPA license was revoked following her conviction on a prior federal felony.
In January 2006, McIntosh was hired by FITEC LLC, in Kalispell, to act as its chief financial officer (CFO). FITEC was a professional collection agency, specializing in commercial collections and accounts receivable. FITEC also provided risk review and credit granting assistance, credit and adverse reporting, and asset and adverse searching assistance. McIntosh’s duties as CFO included handling all remittances of client services accounts; accounts payable and receivable; all tax preparations and all employee payroll, to include paychecks, withholdings, benefits, Social Security benefits; and Worker’s Compensation issues and insurance. McIntosh also had access to accounts associated with related companies, FITEC Inc. and Lazare Inc.
McIntosh was paid a salary of $45,000 initially for her duties at FITEC LLC. After a short period of time, McIntosh’s salary was increased to $60,000 per year. One of McIntosh’s duties as CFO at FITEC LLC,, was to prepare employee W-2s, including her own. McIntosh had access to all of the financial materials for FITEC LLC and its related companies while preparing her W-2s and the W-2s of the other FITEC LLC employees. McIntosh filed her personal tax returns for calendar years 2006, 2007, and 2008 with the IRS. McIntosh only declared the amount noted as salary on her W-2s for FITEC LLC on her federal tax returns for calendar years 2006, 2007, and 2008.
In spring 2008, the owners of FITEC LLC discovered some irregularities in the company’s financial records. Once the irregularities were discovered, the company ordered an audit of their finances. The audit found that in calendar years 2006, 2007, and 2008, an additional $131,511.14 was deposited from FITEC LLC and its related companies into McIntosh’s personal account and the account of another individual. All of the noted money was over and above McIntosh’s documented salary with FITEC LLC. The other account holder told law enforcement McIntosh told him the checks had to be deposited in his account to conceal the money from the IRS. The CEOs of the companies would testify that none of the additional income received and deposited by McIntosh from January 2006 until March 2008 were authorized, business-related expenditures.
McIntosh did not include any of the $131,511.14 of deposits on her income tax returns for the given calendar years. Based on the audit, an interview with the victims, and an IRS review, it was determined that McIntosh wilfully under reported her taxable income in calendar years 2006, 2007, and 2008. The government has concluded that McIntosh underreported her taxable income in 2006 by $71,924.34; in 2007, by $55,378.88; and in 2008, by $4,207.92. The additional tax due and owing for each calendar year is as follows: in tax year 2006, tax owing is $16,560; in tax year 2007, tax owing is $11,870; in tax year 2008, tax owing is $419. A total of $28,849 is due and owing to the IRS, in addition to an estimated $6,710.59 in interest.
Because there is no parole in the federal system, the “truth in sentencing” guidelines mandate that McIntosh will likely serve all of the time imposed by the court. In the federal system, McIntosh does have the opportunity to earn a sentence reduction for “good behavior.” However, this reduction will not exceed 15 percent of the overall sentence.
The investigation was a cooperative effort between the Federal Bureau of Investigation and the Criminal Investigation Division of the Internal Revenue Service.