Tax evasion scheme results in conditional sentences and $98,233 in fines

Tax evasion scheme results in conditional sentences and $98,233 in fines

Halifax, Nova Scotia, January 9, 2015... This week, Mary Emily Samson, a former Dartmouth resident, and George Mitchum, of Yarmouth, were fined a total of $98,233 and each given a conditional sentence order.
On January 5, Ms. Samson was found guilty of fraud over $5,000 under the Criminal Code, for her role in a false invoice scheme. She was fined $20,998. On January 8, Mr. Mitchum entered guilty pleas for his part in the scheme and was fined $77,235 for one count of fraud over $5000 and one count of tax evasion.
A Canada Revenue Agency (CRA) investigation revealed that Ms. Samson and Mr. Mitchum participated in an ongoing fraud scheme from December 2005 to January 2008. During the course of her participation in this fraud, Ms. Samson created 114 false invoices, amounting to a total of $968,384. These invoices made it appear that her now defunct company, Virgin Water Fisheries Limited, was selling lobster and other fish to Mitchum Enterprises Ltd., owned by George Mitchum. These purchases were never made, but Mr. Mitchum submitted the invoices to the CRA, allowing him to fraudulently reduce his company's income by $968,384, thus reducing the company's federal tax owing by more than $150,000. Ms. Samson sold these invoices to Mitchum Enterprises Ltd. for an amount of at least $20,998.
Ms. Samson's fine includes a conditional sentence order for a period of 6 months and includes house arrest for three months, followed by two months under a curfew and probation for the remaining month. She must also complete 30 hours of community service. The fine represents 100% of the profit Ms. Samson made from her illegal activities and must be paid in full within three years. These types of fines are used by the courts in an effort to ensure people do not profit from their crimes.
Mr. Mitchum's fine represents 50% of the tax that he tried to evade and it must be paid within one year. He also received a conditional sentence order for a period of 18 months which includes house arrest for six months, followed by six months under a curfew, probation for the remaining 6 months and the completion of 50 hours of community service. In addition to the court-imposed fine, Mr. Mitchum must also pay the full amount of tax owing, plus interest and any civil penalties that may be assessed by the CRA.
The preceding information was obtained from the court records.

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