James Rice, an orthopedic surgeon, and his wife Susan, who managed their medical practice, were sentenced to five years in prison for failing to file tax returns, evading taxes, and failure to pay over employment taxes.
From 2007 to 2016 the couple transferred one million dollars from the practice to other accounts they controlled, including personal bank accounts and a business account for a truffle company Susan Rice owned. The couple used their business bank accounts to pay for personal expenses, including a country club membership and dog kennel boarding.
The Rices also withheld almost $580,000 in payroll taxes from their employees and used the funds for personal use. From 2014 to 2016 they filed no income tax returns.
The couple was ordered to pay approximately 2.4 million dollars to the government in in personal, corporate, and employment taxes.
