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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.
