KY man enters plea agreement in federal court for $1 million in tax evasion over five years

A Kentucky man has entered a plea agreement in Kentucky federal courts to evading paying more than a million dollars in income taxes from 2014 to 2019.

John McLane Jr. pleaded guilty to one count of evading income tax and faces no more than five years in prison, $250,000 fine, and three years supervised release. His sentencing is scheduled for Nov. 22.

According to court documents, from 2014 to 2019, McLane was involved in several marketing companies and was tasked with soliciting investors. Once he did, he used the money to either repay investors, or for his own personal use, which was contrary to representations made to investors.

The plea agreement states he used investor money to pay a variety of personal expenses, including travel, housing, his children’s college tuition, vehicles, retail purchases, and other living expenses. He did not report ant of this money as income.

McLane was also making money from gambling, which should be reported as taxable income on individual tax returns, but was not according to court documents.

He failed to file individual income tax returns for five years and filed Forms 4668 with the IRS requesting an extension of time to file and individual income tax return, but failed to file the return required by law.

In total throughout the five years, McLane had received a taxable income amount of $3,087,857. His tax due during that same time was $1,215,027.

McLane’s conditions of release were also filed that day, and are subject to him not violating any federal, state or local law, cooperate with collection of DNA, advising the court of any change of residence or phone number, and appear at all court dates.