COLUMBUS, OH – Andre Donnell Dowdy, 47, of Westerville, Ohio, was sentenced to serve one day in jail, three years of supervised release, of which 180 days will be served in home confinement, 300 hours of community service, and was ordered to pay $112,684 in restitution to the Internal Revenue Service (IRS) on one count of income tax evasion. In addition, Dowdy agreed to give up any ownership rights to $273,651.72 in U.S. currency that was seized.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office, announced the sentenced handed down by U.S. District Judge Michael H. Watson.
According to court documents, between May 2007 and July 2017, Dowdy was employed as a commercial real estate appraiser and agent for The Robert Weiler Company in Columbus, Ohio. He received both a regular salary and a percentage of company sales commissions. Nevertheless, from 2009 through 2016, Dowdy was involved with IRS collections due to a prior history of untimely or failure to pay taxes due and owing.
In February 2016, Dowdy told an IRS Revenue Officer that he was not working and did not have a bank account. Yet, on March 2, 2016, he withdrew exactly $10,000 out of a bank account over which he had sole control for a down payment towards the purchase of a 2014 F-150.
In July 2016, Dowdy filed for bankruptcy and claimed debts to the IRS of $168,748, which included interest and penalties. As a result, the IRS designated Dowdy as insolvent and ceased collection activity.
The following month, Dowdy registered The Orange Company, Ltd. Dowdy was the only member of the company.
In September 2016, Dowdy deposited two checks totaling $96,000 that were made payable to him from the Weiler Co. into the Orange Company bank account. In October 2016, Dowdy deposited a check made payable to him for $589,178.33 made payable to him from the Weiler Co. into the Orange Company account.
In total, Dowdy earned approximately $803,248 in commissions during 2016.
Between October 2016 and December 2016 Dowdy conducted 11 cash withdrawals from the Orange Company bank account in amounts ranging from $7,000 to $9,000 in order to avoid filing a Currency Transaction Report.
In December 2016, Dowdy’s bankruptcy was discharged and one week later he made a $40,000 balloon payment from the Orange Company bank account to his mortgage company. Also, in January 2017, Dowdy made a $16,000 down payment on a 2016 Porsche Cayenne, and in February 2017, he wired a $25,000 down payment to purchase a condominium in the Dominican Republic.
In total, the tax loss to the IRS was $112,684 for the 2013-2015 tax years.
Dowdy agreed to give up any ownership rights to $273,651.73 in U.S. currency that was seized from a bank account in the name of the Orange Company. The Chapter 7 Trustee that was appointed to Dowdy’s bankruptcy case will distribute the seized currency to the creditors, including the IRS.
“Dowdy thought he had created a web of financial lies that would help him avoid his income tax liabilities, but his plan was exposed and he still owes back taxes to the IRS, including interest and penalties” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case was prosecuted by Assistant United States Attorney Jessica W. Knight and was investigated by special agents of IRS-Criminal Investigation.