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Rake in $1 million a year! Pay no taxes!

Then go to the slammer for four years

Encinitas osteopath Dr. James Francis Murphy today (January 13) was sentenced to four years in prison and his wife, Denine Christine Murphy got a year under house arrest for paying almost no federal income taxes for ten years, despite regular warnings from the Internal Revenue Service (IRS). He was ordered to pay almost half a million dollars to to the IRS, and she is to pay almost $150,000.

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Evidence at trial showed that the Murphys used a bogus trust and filed false returns concealing their actual income, which was as much as $1 million a year. When confronted by the IRS, the Murphys used a series of dodges: falsely claiming they were not citizens of the United States; claiming that federal tax laws did not apply to them; fraudulently presenting fictitious documents such as so-called "Indemnity Bonds" and "Bonded Promissory Notes," which they claimed to be worth hundreds of millions of dollars, as payments to the IRS; and fraudulently claiming that the hundreds if thousands of dollars they paid to credit card companies, utilities, and others were actually withholdings of federal income taxes.

Despite their million-dollar annual income, the Murphys exploited the earned income tax credit, which is intended for low-income families, to get refunds.

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Encinitas osteopath Dr. James Francis Murphy today (January 13) was sentenced to four years in prison and his wife, Denine Christine Murphy got a year under house arrest for paying almost no federal income taxes for ten years, despite regular warnings from the Internal Revenue Service (IRS). He was ordered to pay almost half a million dollars to to the IRS, and she is to pay almost $150,000.

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Evidence at trial showed that the Murphys used a bogus trust and filed false returns concealing their actual income, which was as much as $1 million a year. When confronted by the IRS, the Murphys used a series of dodges: falsely claiming they were not citizens of the United States; claiming that federal tax laws did not apply to them; fraudulently presenting fictitious documents such as so-called "Indemnity Bonds" and "Bonded Promissory Notes," which they claimed to be worth hundreds of millions of dollars, as payments to the IRS; and fraudulently claiming that the hundreds if thousands of dollars they paid to credit card companies, utilities, and others were actually withholdings of federal income taxes.

Despite their million-dollar annual income, the Murphys exploited the earned income tax credit, which is intended for low-income families, to get refunds.

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