Jury Convicts Louisiana Man of Bankruptcy Fraud and Tax Evasion After Concealing Property and Funds Using Family Members

Louisiana – On September 20, 2022, United States Attorney Brandon B. Brown announced that a federal jury in Lake Charles, Louisiana returned a guilty verdict Joseph Randall Boswell, Sr., 53, of Elizabeth, Louisiana, following a week-long trial. Boswell was convicted of one count of bankruptcy fraud and one count of tax evasion. United States District Judge James D. Cain, Jr. presided over the trial.

According to evidence produced at trial, Boswell willfully and illegally concealed property from the United States Bankruptcy Trustee and his creditors through his Chapter 7 bankruptcy case filed in September 2011. Boswell, in particular, disguised funds made from nominee business and service contracts that could have been given to creditors. Boswell sought to deceive the government by hiding facts from the Bankruptcy Court about the amount of income he actually earned and the property in which he had an interest. Boswell worked for himself and omitted facts from the court about firms he controlled through other family members.

Evidence presented at trial revealed that these firms were formed in the names of other family members to conceal the fact that Boswell was directing and orchestrating the business activities for these companies and making money through contracts signed by him.

Boswell was also found guilty of attempting to evade and prevent payment of income taxes owed to him from 2001 to 2009. The jury concluded that Boswell hid assets from the Internal Revenue Service by putting them in the names of other family members in order to avoid paying $597,00 in income taxes.

“This was a complicated case that involved countless hours of work by both attorneys from this office, agents with the Internal Revenue Service-Criminal Investigation, and employees with the U.S. Trustee’s Office,” stated U.S. Attorney Brandon B. Brown. “Those who defraud the government through bankruptcy proceedings and attempt to avoid paying the income tax they owe are a burden to citizens who obey these laws. We will not back down from prosecuting cases involving this type of fraud and are committed to ensuring that these laws are not violated.”

“Yesterday’s guilty verdict is a direct result of the excellent partnership IRS-CI and the U.S. Attorney’s office has in combating violations of Federal law,” said Demetrius D. Hardeman, Assistant Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office. “This guilty verdict should serve as a deterrent to those who might contemplate similar fraudulent actions and who willfully violate their known legal duty of paying their fair share of taxes.”

On each count, Boswell faces up to 5 years in prison, three years of supervised release, and a fine of up to $250,000. Sentencing has been scheduled for 1:30 p.m. on January 23, 2023.

The Internal Revenue Service-Criminal Investigation and the United States Trustee’s Office investigated the case, which is being prosecuted by Assistant United States Attorneys Cytheria D. Jernigan and Earl M. Campbell.