Make us your home page

Today’s top headlines delivered to you daily.

(View our Privacy Policy)

Pinellas man gets five years in federal prison in tax fraud scheme

TAMPA — A federal judge sentenced a 60-year-old Pinellas County man to five years in prison on Tuesday for concocting a scheme to defraud the federal government out of $2.8 million.

Jack Lee Malone, 60, was found guilty in March of conspiring to impair and impede the Internal Revenue Service by promoting an unlawful tax avoidance scheme.

He and co-defendant Joseph Sweet convinced 1,300 national clients that they didn't have to pay any federal income taxes, according to the U.S. Attorney's Office in Tampa.

Starting in 1999, federal prosecutors said the pair convinced their clients that they could avoid paying federal taxes by putting their income and assets in "sham" trusts sold by their businesses, JoY Foundation and EDM Enterprises.

They told people that income is "not taxable," that filing federal tax returns is "voluntary" and advised them to "deceive the IRS."

An ex-client of the JoY Foundation, 64-year-old Terry Moore of Riverview, pleaded guilty in February to a charge of conspiring to impede the IRS. He was sentenced Tuesday to eight months of home detention and five years of probation.

Moore cooperated with the government and testified against Malone and Sweet, who was also found guilty and will be sentenced in August.

Pinellas man gets five years in federal prison in tax fraud scheme 06/15/10 [Last modified: Tuesday, June 15, 2010 10:40pm]
Photo reprints | Article reprints

© 2017 Tampa Bay Times


Join the discussion: Click to view comments, add yours

  1. Rowdies shut out at Pittsburgh


    PITTSBURGH — The Rowdies lost their first USL game in nearly a month, 1-0 to Pittsburgh on Thursday night.

  2. Trump reveals that he didn't record Comey after all


    WASHINGTON — President Donald Trump declared Thursday he never made and doesn't have recordings of his private conversations with ousted former FBI director James Comey, ending a monthlong guessing game that he started with a cryptic tweet and that ensnared his administration in yet more controversy.

    President Donald Trump said Thursday that he didn’t record his conversations with James Comey.
  3. Lightning fans, don't get attached to your first-round draft picks

    Lightning Strikes

    CHICAGO — When Lightning GM Steve Yzerman announces his first-round pick tonight in the amateur draft at No. 14, he'll invite the prospect onto the stage for the once-in-a-lifetime photo opportunity.

    Tampa Bay Lightning left wing Jonathan Drouin (27) eludes  Montreal Canadiens left wing Phillip Danault (24) during the second period of Wednesday???‚??„?s (12/28/16) game between the Tampa Bay Lightning and the Montreal Canadiens at the Amalie Arena in Tampa.
  4. Investigation Discovery TV show profiles 2011 Landy Martinez murder case


    The murder of a St. Petersburg man will be featured this week on a new true crime series Murder Calls on Investigation Discovery.

    Jose Adame sits in a Pinellas County courtroom during his 2016 trial and conviction for first-degree murder. Adame was convicted of first-degree murder last year for torturing and then executing his boyfriend as he pleaded for his life in 2011. Now it will be featured in a new true crime series Murder Calls on Investigation Discovery. The episode will air on June 26 at 9 p.m. [DOUGLAS R. CLIFFORD   |   Times]
  5. Uhuru mayoral candidate Jesse Nevel protests exclusion from debate


    ST. PETERSBURG — Jesse Nevel, the International People’s Democratic Uhuru Movement candidate for mayor, on Thursday demanded that he be allowed to participate in a July 25 televised debate between incumbent Mayor Rick Kriseman and challenger Rick Baker.

    Mayoral candidate Jesse Nevel holds a news conference outside the headquarters of the Tampa Bay Times on Thursday to protest his exclusion from the mayoral debate. Nevel is a member of the International People’s Democratic Uhuru Movement.