Ann Sonderman Giles, 56, and Lu Anne Wallace, 66, both of Lexington, pled guilty to conspiring to defraud the United States. According to their plea agreements, from January 2014 through July 2017, Wallace and Giles served as the Chief Executive Officer and Chief Financial Officer, respectively, for multiple healthcare-related companies registered in Kentucky. Giles and Wallace admitted to conspiring to defraud the United States by failing to pay over IRS mandated trust fund taxes for the companies. Additionally, the companies run by Giles and Wallace failed to pay over their required matching portions of Social Security and Medicare taxes. When the IRS moved to take civil enforcement actions, the Defendants facilitated the transfer of business operations to different LLCs, including changing bank accounts, while continuing to fail to pay the IRS trust fund taxes that were due each quarter. In total, Giles and Wallace conspired to defraud the United States out of tax revenue in the amount of approximately $1,595,726.
