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| Crime |

High-Tone Dallas Realtor Nicky Sheets Pleads Guilty to Tax Evasion

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This is really a D Magazine story, but since the U.S. Attorney's Office just sent word, well, what the hell: Nicky Sheets -- aka John Nicholas Sheets, aka Mr. Eleanor Mowery Sheets -- pleaded guilty today to one count of tax evasion in U.S. District Judge Jane J. Boyle's courtroom. Guess I'd best read that D cover story from last year about the big-money real estate twosome. Or I could just read the release, which follows in full. But first, the excerpt:

The documents further state that beginning in 1998, rather than pay his substantial tax debts, Sheets used various business entities to conceal the nature and extent of his assets. Sheets admitted to transacting personal business and paying personal creditors with these funds, rather than paying the Internal Revenue Service (IRS). Using these businesses, Sheets commingled funds to pay approximately $435,988 in mortgage interest to three lenders so that he and his wife could live in a home whose market value exceeded $1.3 million during that period. Sheets also stipulated that he used commingled funds to buy personal items (including an interest in a private airplane and vehicles) and pay numerous personal creditors.

Sheets faces a max sentence of five years in prison, a $250,000 fine and restitution. And I know where Candy Evans will be July 8. When I asked for comment concerning the case against Eleanor, I was told, of course, "No comment as the investigation is ongoing."

DALLAS REALTOR PLEADS GUILTY TO TAX EVASION

DALLAS - John Nicholas Sheets, a.k.a. "Nicky," pleaded guilty this afternoon before U.S. District Judge Jane J. Boyle to one count of tax evasion, announced U.S. Attorney James T. Jacks of the Northern District of Texas. He faces a maximum statutory sentence of five years in prison, a $250,000 fine and restitution. Sentencing is set for July 8, 2010.

According to filed documents that were unsealed today, Sheets is a licensed realtor who has worked in North Texas for several years. Since 1996, Sheets and his wife have successfully worked as real estate agents and have established multiple closely-held businesses including Eleanor Mowery Sheets, Inc.; Dallas EMS, LLC; and E-Residential, LLC.

In the documents, Sheets stipulates that he has substantial unpaid individual and corporate tax debts from 1997, 1998, 1999, 2001, 2005, 2006, 2007 and 2008 totaling approximately $2.7 million, including penalties and interest.

The documents further state that beginning in 1998, rather than pay his substantial tax debts, Sheets used various business entities to conceal the nature and extent of his assets. Sheets admitted to transacting personal business and paying personal creditors with these funds, rather than paying the Internal Revenue Service (IRS). Using these businesses, Sheets commingled funds to pay approximately $435,988 in mortgage interest to three lenders so that he and his wife could live in a home whose market value exceeded $1.3 million during that period. Sheets also stipulated that he used commingled funds to buy personal items (including an interest in a private airplane and vehicles) and pay numerous personal creditors.

Sheets further admitted that on April 5, 2006, he used a local check-cashing business to conceal the nature of his assets so as to avoid paying federal income taxes. Specifically, he took a $123,000 settlement check to the local check-cashing business to conceal the existence of the funds, and rather than deposit the check into his personal bank account for free, he paid more than $2000 to cash that check. None of the cash he obtained on this date was used to pay the IRS; he used the funds to pay for personal expenses and pay other creditors. The factual resume goes on to state that Sheets negotiated the check in this manner upon the advice, recommendation and suggestion of his attorney at the time.

The case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Rick Calvert.

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