The owner of a Kirkland interior design business was recently convicted of 25 counts for a nearly 20-year scheme to avoid paying more than $560,000 in income taxes.
Daniel Nix, 58, will face his sentencing hearing on Nov. 9 following a four-day trial and a day of jury deliberation that found him guilty of 13 counts of tax evasion, 11 counts of providing fictitious financial obligations and one count of corrupt interference with the administration of the Internal Revenue Code. U.S. Attorney Annette Hayes announced the conviction on July 15.
“Nix enjoyed a lavish lifestyle with the proceeds of his crime,” Hayes wrote in a press release. “He owns a Kirkland home assessed for more than $1 million. He bought and owned at least 16 luxury vehicles over the years, including a Porsche, a Jaguar, a BMW, a Ford F-150, multiple Mercedes-Benz, Harley Davidsons, and other imported motorcycles.”
Tax evasion is punishable by up to five years in prison and a $250,000 fine. Presentation of fictitious financial instruments is punishable by up to 25 years in prison and a $250,000 fine. Attempts to interfere with the administration of the tax code is punishable by up to three years in prison and a $5,000 fine.
A grand jury indicted Nix on April 12, 2017 on each of the charges for which he was convicted.
Karen Street, 58, is a second defendant who was indicted at the same time on two counts of providing fictitious financial obligations.
The indictment release didn’t mention the outcome of her charges.
Nix operated Dannix Design, a medical office interior design firm. According to the release, Nix refused to pay taxes on $3.9 million in gross income and $1.9 million in net profit as early as 1998 and from 2000-13. Nix hid his income and assets by setting up shell companies, filing bankruptcy claims and filing false claims against the government.
Additionally, Nix transferred assets into sham religious entities that he had set up between 2010 and 2013, frustrating IRS efforts to put liens on his assets, according to the indictments.
In February 2013, Nix sent 11 fake money orders to the IRS, totaling more than $1 million, in an attempt to fake his tax obligations.
Street, Nix’s long-time partner, also submitted two fake money orders as payment for back taxes she owed, according to the indictments.
Hayes added in a press release that Nix, on several occasions, harassed IRS and Department of Revenue agents, filing fraudulent liens against them. He also called other unrelated individuals who were subject to IRS liens and falsely claimed the liens filed by the government were invalid.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI).
The case is being prosecuted by Assistant U.S. Attorney Seungjae Lee and Mark Parrent.