Smith sentenced to prison
A Lake Oswego man was sentenced last week in U.S. District Court in Portland on two counts of filing false U.S. federal income tax returns, the Department of Justice announced.
Trevor Smith, a former Oregon chemical company executive, was sentenced to serve 18 months in prison and to pay a $50,000 criminal fine following his conviction on the two charges. Smith was also sentenced to pay restitution for all taxes due, which will be determined by the Internal Revenue Service.
Smith, the former vice president of sales for Raisio Western North America, was convicted of filing false U.S. federal income tax returns for tax years 1999 and 2000, IRS officials said. While employed at Raisio, Smith received approximately $350,000 in kickback payments from the former general manager of Chemical Products Technologies, based in Cartersville, Ga., relating to Raisio's purchases of dry anthraquinone. Anthraquinone is a pulping additive used to increase pulp yield.
According to investigating IRS agents, Smith did not report the receipt of that kickback income on his U.S. federal income tax returns for 1999 and 2000. After a jury trial, Smith was convicted of both counts on March 1.
The charges against Smith were the third to arise out of an investigation in the Northern District of Georgia and the District of Oregon conducted by the Antitrust Division's Atlanta Field Office, with the assistance of the Internal Revenue Service Criminal Investigation Division. In June 2005, Patrick Crowe III pleaded guilty to a two-count felony charge for his participation in two conspiracies to commit mail fraud and deprive CPT of the honest services of its employees. Crowe was sentenced to four months in prison, to two months in a halfway house, and to pay restitution to CPT in the amount of $52,130.
In March 2006, John R. Olsen pleaded guilty to two separate conspiracies to commit mail fraud and deprive CPT of the honest services of its employees and to two counts of filing false U.S. federal income tax returns. Olsen is awaiting sentencing.