Date: 05-13-2021

Case Style:

Case Number: 2:20-cr-00387-AJS

Judge: Arthur J. Schwab

Court: United States District Court for the Western District of Pennsyvlania (Allegheny County)

Plaintiff's Attorney: United States District Attorney’s Office

Defendant's Attorney:

Criminal Defense Lawyer Directory

Description: Pittsburgh, Pennsylvania criminal defense lawyer represented Defendant charged with aiding an assisting in the filing of false tax returns.

Kathy Billotte, age 60, of Frenchville, Clearfield County, Pennsylvania, was charged with aiding and assisting in the preparation or filing of a false income tax return and criminal contempt and false statement to the government.

According to information presented to the court, Billotte was a tax return preparer and operated a tax return preparation business known as "K B Tax Services" in Clearfield County. She falsified annual income tax returns prepared for at least 15 individuals during the period 2013 through 2017, ensuring the individuals received tax refunds to which they were not entitled. Specifically related to the offense to which she pleaded guilty, Billotte prepared and filed on February 26, 2016, a 2015 federal income tax return for a tax payer identified as "T.G." on which she falsely and fraudulently reported that he/she operated a private business and incurred business expenses, as well as inflated unreimbursed business expenses and charitable donations. The total tax loss to the Internal Revenue Service for all 15 clients was $193,102.15, including interest, and the court ordered Billotte to repay the Internal Revenue Service in full.

While the criminal tax case was pending, Billotte, who had a 1999 felony conviction for fraudulently obtaining U.S. Postal Money Orders, falsified court documents allowing her to serve on a federal grand jury. During her service, it was discovered that she was improperly sharing information that had come before the grand jury.

Prior to imposing sentence, Judge Schwab stated that Billotte’s conduct was particularly egregious in that she methodically and repeatedly defeated the tax system and then, after being federally charged, she continued to engage in unrelated criminal conduct during which she shared secret grand jury information that could have brought harm to both grand jury witnesses and law enforcement officers.

Assistant United States Attorneys Carolyn J. Bloch and Cindy K. Chung prosecuted this case on behalf of the government.

Acting United States Attorney Kaufman commended the Internal Revenue Service – Criminal Investigation and the Federal Bureau of Investigation for the investigations leading to the successful prosecution of Billotte.

18 U.S.C. 401(3) CRIMINAL CONTEMPT OF COURT
(1)

18 U.S.C. 1001(a)(2) FALSE STATEMENT TO GOVERNMENT
(2)

Outcome: The defendant is sentenced to a 27- month term of imprisonment at each count of conviction to run concurrently (27 months at Count 1 of Cr 20-69, 27 months at Count 1 of Cr 20-387, and 27 months at Count 2 of Cr 20-387) to be followed by a 1-year term of supervised release at each count of conviction to run concurrently (1 year at Count 1 of Cr 20-69, 1 year at Count 1 of Cr 20-387, and 1 year at Count 2 of Cr 20-387). A mandatory $300.00 special assessment is imposed, a fine is waived for inability to pay. Restitution is imposed in the amount of $193,102.15 at Cr 20-69.

Plaintiff's Experts:

Defendant's Experts:

Comments: