Hinton man gets probation for helping coal operators skip taxes - WBOY.com: Clarksburg, Morgantown: News, Sports, Weather

Hinton man gets probation for helping coal operators avoid paying taxes

Posted: Updated:
  • Local NewsMore>>

  • Vintage Restaurant and Wine Bar Opens Its Doors To The Public

    Vintage Restaurant and Wine Bar Opens Its Doors To The Public

    Thursday, April 17 2014 12:08 AM EDT2014-04-17 04:08:19 GMT
    On Wednesday, people in Randolph County welcomed a new business to the community.  The Vintage Restaurant and Wine Bar is located on Randolph Avenue, in Elkins.  The menu offers new modern American food
    On Wednesday, people in Randolph County welcomed a new business to the community.  The Vintage Restaurant and Wine Bar is located on Randolph Avenue, in Elkins.  The menu offers new modern American food
  • WVU Public Relation Student's Help A Local Non-Profit

    WVU Public Relation Student's Help A Local Non-Profit

    Wednesday, April 16 2014 11:50 PM EDT2014-04-17 03:50:05 GMT
    The Nine students working on this project for their public relations campaigns course, have completely re-branded the non-profit, by creating a sufficient mission statement, new name, and social media
    The Nine students working on this project for their public relations campaigns course, have completely re-branded the non-profit, by creating a sufficient mission statement, new name, and social media
  • Morgantown Battles Underage and High Risk Drinking

    Morgantown Battles Underage and High Risk Drinking

    Wednesday, April 16 2014 11:47 PM EDT2014-04-17 03:47:11 GMT
    WVU and the City of Morgantown, paired up to host a discussion April 16 on underage and high risk drinking. The discussion was meant to discuss the problems at hand, and talk about possible solutions.
    WVU and the City of Morgantown, paired up to host a discussion April 16 on underage and high risk drinking. The discussion was meant to discuss the problems at hand, and talk about possible solutions.

A 62-year-old Hinton man will serve three years probation, the first two under home confinement, for his role in a scheme that allowed several coal operators to avoid paying taxes.

U.S. Attorney Booth Goodwin said Donald R. "Duke" McGann had previously been convicted of tax evasion and structuring cash withdrawals from various banks in southern West Virginia as part of a larger check cashing scheme involving coal operators.

Goodwin said McGann provided coal operators involved in the scheme with bogus invoices for goods or services. The coal operator would then give McGann a check, which he deposited in his checking account. He then would withdraw the money from his account in increments of $10,000 or less, a process known as "structuring," to avoid federal reporting requirements. McGann would keep 10 percent then return the rest to the coal operators, who then used the money to pay employees under the table or otherwise kept it as a tax-free windfall, Goodwin said.

Goodwin said in 2009 alone McGann cashed checks totaling more than $770,000 for three different coal companies.

The case was investigated by the IRS Criminal Investigative Division and prosecuted by U.S. Attorney Thomas Ryan.

Goodwin said a co-conspirator, James Trent, 53, of Rock View, in Wyoming County, was sentenced Nov. 15 to three years in prison for tax evasion.