Ladue Resident Pleads Guilty of Tax Evasion

The United States Attorney’s Office announced that Marilyn Francel pled guilty to tax evasion involving joint income tax returns filed with her husband for the years 2003-2006. 

The  unpaid taxes for each year are $89,473 for 2003; $92,766 for 2004; $69,863 for 2005; and $92,019 for 2006. 

Francel, 60, of Ladue pled guilty to four felony counts of tax evasion before United States District Judge Stephen N. Limbaugh, Jr. 

Sentencing has been set for December 7, 2011. "Tax violations have been erroneously referred to as victimless crimes, but it's the honest law abiding citizen who is harmed when someone tries to cheat our nation's tax system", said Stephen Boyd, Special Agent in Charge-IRS-Criminal Investigation, St. Louis Field Office.  

In papers filed with the court, Francel agreed that she was the practice manager of her husband’s plastic surgery medical practice – Thomas J. Francel M.D. Plastic Surgery P.C.  The practice offered discounts for non-insured cosmetic surgeries when the patient paid by cash or cashier’s check.

These discounted payments were recorded in a green ledger book maintained by the office business manager and not in the normal financial records of the practice.  Francel agreed that these receipts were not deposited into the business bank account for the practice. 

Francel admitted in the court filing that cash and cashier’s check receipts ranging in amounts from $193,000 up to $264,000 were not reported on each of the joint federal income tax returns filed by her and her husband from 2003 through 2006. 

She was given or had access to these receipts.  Francel admitted that she attempted to evade her taxes for those years.      

Each count carries a maximum penalty of five years in prison and/or fines up to $250,000.  In determining the actual sentences, a Judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.  The parties recommended to the court a range under the Sentencing Guidelines in which a sentence of up to 12 months in prison could be imposed. 

 This case was investigated by Internal Revenue Criminal Investigation.  Assistant United States Attorney James E. Crowe, Jr., prosecuted the case for the U.S. Attorney’s Office.

Information was provided by the United States Attorney's Office Eastern District of Missouri.