Published Tuesday, April 20, 2010 | 12:13 p.m.
Updated Tuesday, April 20, 2010 | 5:09 p.m.
U.S. District Judge Kent Dawson today sentenced former medical consultant Howard Awand to four years in prison and wife Linda to three years behind bars for willful failure to pay roughly $2.5 million in back taxes.
The couple was also ordered to each pay about $2.5 million in restitution.
IRS Criminal Investigations Special Agent Paul Camacho, head of the agency's Las Vegas field office, said the conviction and sentencing was a "huge" case for the agency.
It's something that's "kind of common in hard economic times when taxpayers who are struggling to meet all their obligations, including their tax obligations," Camacho said. "We want to make it clear that you won't go to jail for that. We'll work with you. But this situation was different."
The Awands, Camacho said, lived a life of luxury on the government's dime. They bought exotic estates, cars and antique furniture. Their extravagant purchases included a $215,000 Bentley and they held lavish parties at a home they owned in Big Bear, Calif.
"If you are making millions of dollars and clearly have the ability to pay your taxes but don't and choose instead to live a life of luxury, you will go to jail for that. You can have nice things but don't ask the government to fund them."
Nevada's U.S. Attorney Daniel Bogden likewise was pleased with the sentence and said it was appropriate "given the significant tax loss and period of time over which the offenses occurred."
Howard Awand, 65, of Vevay, Ind., and Linda Awand, 61, of Stowe, Vt., owned Nevada Medical Consultants. The company was taxed as a partnership and the couple was responsible for reporting their share of Nevada Medical's income on their joint personal tax returns.
They reported taxable income of $8.1 million from 2001 through 2004 and owed $2.6 million in taxes. But they paid only $30,000 and only after they discovered they were under investigation by the IRS.
Howard Awand also testified at trial that he falsely told people that he served in Vietnam and in the CIA in order to drum up business for the medical consulting company.
He still faces other legal problems. Last month he pleaded guilty to concealing and not reporting a felony crime in connection with a scheme that allegedly involved physicians and lawyers who defrauded clients. He is scheduled to be sentenced June 25.
His plea came two weeks after co-defendant Noel Gage, a Las Vegas attorney, pleaded guilty to a felony obstruction of justice charge.
The tax case was prosecuted by Assistant U.S. Attorneys Steven Myhre and Kathryn Newman.
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