© 2001
The Nugget Newspaper
Sisters, Oregon
All rights reserved

Send us an email

Display Advertising

Sisters man goes to prison in IRS case

Gary Raymond Harvey, 50, of Sisters has been sentenced to five months imprisonment for making and presenting to the Internal Revenue Service a false claim for a refund.

United States District Judge Ann Aiken also sentenced Harvey to serve five months in a community corrections facility after his release from prison. Harvey's request to voluntarily report to the Sheridan Federal Correction Institute on March 1, 2002, was granted by Judge Aiken without objection.

Judge Aiken found Harvey to be responsible for a loss of $2,192,853.20 pertaining to the comptroller warrant, "check-like" instruments issued to the Internal Revenue Service. Harvey attached these comptroller checks to letters of protest to the IRS.

According to the indictment filed, Gay Harvey and his wife, Bernice, did not file any Federal income tax returns for 1983 through 1998, and owed over $100,000 in taxes for this period.

When the IRS sent out notices of deficiency and filed tax liens, the Harveys responded with letters of protest which demanded refunds.

The letter stated, in part, "Please send refund for overpayment immediately.

"You will be billed monthly plus interest at 18 percent per year for the balance due if you refuse to send refund."

In addition to the false claims against the IRS, Harvey was charged with "passing a falsely made obligation or security of the United States" to the Oregon Department of Revenue and the Treasures of Deschutes and Wasco Counties in connection to the comptroller warrants sent.

This case was investigated by special agents of the Criminal Investigation Division of the Internal Revenue Service and prosecuted by the U.S. Attorney's Office in Eugene.

Back to front page