After a nine-day trial in U.S. District Court in Bowling Green, a jury has found James S. Faller II, 54, of Russell Springs guilty of income tax evasion and other federal crimes, according to a news release from the U.S. Department of Justice.
Faller was convicted Friday of four counts of evading federal individual income taxes, four counts of failing to file his tax returns in a timely fashion from 2006 to 2009, one count of corruptly endeavoring to obstruct the Internal Revenue Code, and one count of falsifying a document submitted to the Internal Revenue Service under penalty of perjury.
Faller earned $126,000 to $289,000 a year from April 2006 to March 2010 by providing consulting services involving criminal defense investigations, according to the release.
According to Herald-Leader archives, Faller operated an organization called U.S. Justice Watch and was an adviser on the legal team for Karen Cunagin Sypher. Sypher was convicted of trying to extort money from University of Louisville basketball coach Rick Pitino after a sexual tryst in a restaurant.
The Justice Department said Faller had his income "made payable to another individual as a nominee and deposited the income into bank accounts that were not in his name."
He also lied about his gross monthly income in a document provided to a revenue officer during an IRS civil collections action in March 2010, failed to file individual income tax returns in a timely fashion and filed false returns for 2006 and 2007 in March 2011, according to the release.
He is scheduled to be sentenced Sept. 17. He faces years in prison and hundreds of thousands of dollars in fines.