A local business owner who was convicted of evading more than $560,000 in income taxes over 20 years was sentenced to five years in prison on Dec. 7.
Daniel Nix, former owner of Dannix Design, a medical office interior design firm, was found guilty of 25 criminal counts on July 15, including 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.
“Nix enjoyed a lavish lifestyle with the proceeds of his crime,” wrote U.S. Attorney Annette Hayes last week. “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.”
Karen Street, 58, is a second defendant who was indicted at the same time on two counts of providing fictitious financial obligations.
The sentencing press release did not mention the outcome of her charges.
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.
U.S. District judge Robert Lasnik also ordered Nix to pay $851,904 in restitution, representing the evaded taxes and interest. Nix had been evading taxes since as early as 1998, refusing to pay tax on $3.9 million in gross income and $1.9 million in net profit.
Nix used numerous strategies to conceal his income and thwart the Internal Revenue Service, including the creation of sham religious organizations that he transferred assets to, according to a U.S. Department of Justice press release.
The fictitious financial obligations charges come from Nix’s effort to further throw off the IRS in 2013. Nix paid an Arizona man to send 11 fake money orders to the IRS, harassing IRS and Department of Revenue agents and calling unrelated individuals under IRS investigation, telling them that the government’s investigations were invalid.
Street, Nix’s long-time partner, also submitted two fake money orders as payment for back taxes she owed, according to the indictments.