Two owners of a Garland chiropractic clinic were sentenced yesterday to 37 months in federal prison and ordered to repay approximately $350,000 for tax fraud, announced U.S. Attorney for the Northern District of Texas Erin Nealy Cox.
Tammy Boulyaphonh, 51, was convicted by a federal jury on all five counts against her, including one count of conspiring to defraud the United States by underreporting income and four counts of filings false tax returns in February. Her husband, 59-year-old Khamlor Boulyaphonh had pleaded guilty to similar counts days before trial. The defendants were sentenced yesterday before U.S. District Judge Jane J. Boyle.
“This sentencing is a reminder that there are consequences to criminal tax evasion that include going to prison, being branded a convicted felon for the rest of their lives, and paying back all of the taxes owed,” said Special Agent in Charge Tamera Cantu of the IRS Criminal Investigation Dallas Field Office. “This should resonate with those contemplating similar fraudulent actions.”
According to court documents, Mr. and Ms. Boulyaphonh owned and operated chiropractic clinics in Dallas-Fort Worth that provided medical care principally to patients injured in motor vehicle accidents. The majority of the couples’ business income was derived from payments received from insurance companies and payments received from attorneys who had received insurance settlement payments on behalf of their patients.
Ms. Boulyaphonh directed multiple personal injury attorneys to make checks out to her and her husband personally, then diverted the attorney payments to the couple’s personal bank accounts. Mr. and Ms. Boulyaphonh concealed the diverted income from their tax preparer and provided him with false documents to advance the scheme.
At trial, prosecutors established that the couple had paid less than $4,000 total tax on gross receipts of more than $2 million, all while owning two homes, two luxury vehicles, $1 million life insurance policies, and luxury goods.
Between 2010 and 2013, the couple concealed more than $1.2 million in business income from the IRS.
IRS-Criminal Investigation and the Federal Bureau of Investigation’s Dallas Field Office conducted the investigation. Assistant U.S. Attorneys Douglas Brasher is prosecuting the case.