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Williamsburg businessman convicted of tax fraud in federal court (file photo)
NEWPORT NEWS – A Williamsburg businessman was convicted of tax fraud in federal court.
On Monday, October 25th, Michael J. Tiernan, 62, was convicted of false tax returns and failure to submit a tax return.
Tiernan served as the chief financial officer of several Ford’s Colony-related business units, including Ford’s Colony Realty LLC, from at least 2014 to 2017. GMBH. and Southeast Settlement and Title, LLC.
In September 2020, Tiernan was charged with seven bank fraud offenses, two for filing false tax returns, and one for failing to return income tax.
Court documents show that Tiernan incorrectly underestimated the income he received from these companies in his state income tax returns for the 2015 and 2016 tax years. While the earnings were being reported, Tiernan reported large deductions that resulted in zero taxable income for those years. In addition, he also claimed to be insolvent to rule out debt relief in 2015.
In the years above, Tiernan reported that revenue from the companies was $ 289,401 in 2015 and $ 204,523 in 2016. In 2017 Tiernan did not file a tax return.
Evidence also showed he cashed over $ 1.6 million in checks on his personal bank account issued by himself and by previously listed companies. Tiernan spent almost all of these funds through the use of checks and debit card transactions.
In preparing tax returns for the companies he received funds from, he did so in a manner that did not reveal the true amount of his compensation.
Tiernan is now facing a maximum sentence of up to seven years in prison. His sentencing is scheduled for March 2, 2022.
The Eastern District of Virginia District Attorney’s Office notes that actual penalties for federal crimes are typically lower than the maximum penalties provided by law. The judge will consider the sentencing guidelines and other contingency factors.
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