Delaware News

Tax Cheat Receives Prison Term

Department of Justice | Date Posted: Friday, June 29, 2012



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Wilmington – Attorney General Beau Biden announced that the former owner of a local transportation company was sentenced to prison today for failing to pay more than half a million dollars in state taxes over a five year period.  Kristin L. Aulenbach, the former president of Eagle Transportation Services, a luxury chauffeur service formerly based in New Castle, pled guilty on April 12 to one felony count of failure to pay withholding taxes to the Delaware Division of Revenue and one misdemeanor count of failure to pay unemployment taxes to the Delaware Department of Labor.

            “Employers who fail to pay their taxes place an additional burden on law-abiding, tax-paying citizens who have to pay more than their fair share for important public services like schools and police,” Biden said.

In pleading guilty, Aulenbach admitted that Eagle Transportation failed to pay hundreds of thousands of dollars in taxes between October, 2005 and March, 2011.  She was sentenced this morning by Superior Court Judge Richard R. Cooch to three months in prison, followed by two years of probation.   She was also ordered to pay restitution of $528,000 to Delaware, including $265,000 to the Department of Labor for unemployment taxes and interest and $263,000 to the Division of Revenue for income taxes the company withheld from employee paychecks but failed to pay to the State.

The criminal charges stem from an investigation initiated by the Delaware Department of Finance, Division of Revenue Criminal Investigation Unit and the Delaware Department of Labor, Division of Unemployment Insurance during an ongoing review of tax records.  When the investigation revealed credible evidence of the violations the agencies referred the case to the Attorney General’s office for criminal prosecution.

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Tax Cheat Receives Prison Term

Department of Justice | Date Posted: Friday, June 29, 2012



?

Wilmington – Attorney General Beau Biden announced that the former owner of a local transportation company was sentenced to prison today for failing to pay more than half a million dollars in state taxes over a five year period.  Kristin L. Aulenbach, the former president of Eagle Transportation Services, a luxury chauffeur service formerly based in New Castle, pled guilty on April 12 to one felony count of failure to pay withholding taxes to the Delaware Division of Revenue and one misdemeanor count of failure to pay unemployment taxes to the Delaware Department of Labor.

            “Employers who fail to pay their taxes place an additional burden on law-abiding, tax-paying citizens who have to pay more than their fair share for important public services like schools and police,” Biden said.

In pleading guilty, Aulenbach admitted that Eagle Transportation failed to pay hundreds of thousands of dollars in taxes between October, 2005 and March, 2011.  She was sentenced this morning by Superior Court Judge Richard R. Cooch to three months in prison, followed by two years of probation.   She was also ordered to pay restitution of $528,000 to Delaware, including $265,000 to the Department of Labor for unemployment taxes and interest and $263,000 to the Division of Revenue for income taxes the company withheld from employee paychecks but failed to pay to the State.

The criminal charges stem from an investigation initiated by the Delaware Department of Finance, Division of Revenue Criminal Investigation Unit and the Delaware Department of Labor, Division of Unemployment Insurance during an ongoing review of tax records.  When the investigation revealed credible evidence of the violations the agencies referred the case to the Attorney General’s office for criminal prosecution.

# # #

image_printPrint


Graphic that represents delaware news on a mobile phone

Keep up to date by receiving a daily digest email, around noon, of current news release posts from state agencies on news.delaware.gov.

Here you can subscribe to future news updates.