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January 18, 2013

London doctor pleads guilty to tax evasion

The Times-Tribune

CORBIN — Times-Tribune Staff Report

A London doctor who worked in Eastern Kentucky and Tennessee has admitted he evaded more than $900,000 in federal income taxes, according to Kyle Edelen, spokesman for the U.S. Attorney Kerry B. Harvey.

Werner Grentz, 64, pleaded guilty Thursday to tax evasion in London’s  U.S. District Court before Judge Gregory F. Van Tatenhove. As part of his plea, Grentz agreed to pay the Internal Revenue Service the money he owes.

While working as an independent physician contractor for a Jellico, Tenn., hospital, Grentz admitted he earned $356,073 in taxable income in 2009. To hide his income, Grentz had his earnings deposited into bank accounts of companies he controlled. He didn’t file a tax return or pay federal income taxes.

Since 1999, Grentz admitted he failed to pay $900,068 in taxes.

Grentz was indicted April 6 by a grand jury. According to the indictment, Grentz earned more than $1.5 million from 2005 to 2010 but hadn’t filed a federal income tax return since 1999.

Sentencing is set for 2:30 p.m. Thursday, May 16, in London. Grentz could face a maximum prison sentence of five years.  

Harvey and Christopher A. Henry, special agent in charge, IRS, Criminal Investigation Division, jointly made the announcement Thursday.

The investigation preceding the indictment was conducted by the IRS, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant.

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