IRS Raids Business on Word of Man Who Stood to Make Millions From Ensuing Investigation

By National Center for Public Policy Research | July 7, 2008 | 8:21pm EDT

(Editor's Note: The following is the 45th of 100 stories regarding government regulation from the book Shattered Dreams, written by the National Center for Public Policy Research. will publish an additional story each day.)

When W.A. Moncrief fired an incompetent accountant at his oil business in1993, he gave the accountant a generous severance package that included a car. What Moncrief didn't realize was that the accountant was planning on padding his income by colluding with the government in building a dubious case against his former employer.

In testimony before the Senate Finance Committee, Moncrief said that the fired accountant had been stealing files from Moncrief 's company in Fort Worth, Texas, for about a year before his dismissal. The accountant told representatives from the federal Internal Revenue Service, Department of Justice (DOJ) and Department of Treasury that Moncrief had cheated the government of up to $300 million in unpaid taxes. As it turned out, the accountant had made a deal with the IRS district director in Dallas that would net him up to $25 million if Moncrief was prosecuted

Copyright 2003, National Center for Public Policy Research

MRC Store