Kevin Fleming, a Lewes photographer indicted in November 2019 on 16 counts of felony tax charges, will have a change of plea hearing June 10. He previously pleaded not guilty to charges.
The indictment filed in U.S. District Court states Fleming willfully attempted to evade and defeat federal income tax by diverting funds from his corporate Portfolio Books Inc. account to pay for personal expenses from 2012 to 2016. During an interview with a special agent of the Internal Revenue Service, the indictment states, Fleming told the agent he set up the corporation, but Fleming falsely told the agent that the corporation was not a real entity because it had no employees, assets or bank accounts. Fleming faces five counts of tax evasion in connection with diverting funds from his corporations to pay for personal expenses.
According to the indictment, Fleming did not file a federal tax return for his gross income from 2013 to 2016. He faces four counts of failure to file a federal tax return. The indictment states Fleming also deducted federal income tax and Federal Insurance Contributions Act taxes – known as FICA taxes – from his employees' paychecks, but he kept the money instead of sending it to the IRS.
From 2016 to 2017, the indictments states, Fleming failed to pay quarterly taxes totaling $22,584. He faces seven counts of failure to pay federal employee taxes.
Each of the 16 counts is punishable by a maximum penalty of five years’ incarceration, a $250,000 fine and restitution for unpaid taxes.