James R. Corbitt claimed tiny tax liabilities while the business he worked for paid for a lifestyle that included European cars and motorcycles and maid service, prosecutors said today at the medical professional's guilty-plea hearing.
Mr. Corbitt, 66, of Clarksburg, W.Va., managed Nexus Medical Services in Greensburg, according to assistant U.S. attorney Steve Kaufman. That firm specialized in testing the urine of patients referred by the nearby Westmoreland Pain Management Clinic.
From 2005 through 2009, Mr. Corbitt reported household incomes ranging from zero to $44,829, while actually earning anywhere from $81,076 to $167,079 during each of those years, according to the criminal information filed against him.
Meanwhile Nexus paid $77,000 for an apartment he rented, $27,825 for an Audi, $21,565 for a Volkswagen, $32,487 for a Porsche, and around $20,000 for European motorcycles, Mr. Kaufman said.
The company also covered his utilities, cable TV bill, car repairs, and maid and lawn service, Mr. Kaufman said.
"The Corbitts did not even have a personal checking account," the prosecutor said.
As a result, Mr. Corbitt underpaid his taxes by $102,102, Mr. Kaufman said.
"I did it, your honor," Mr. Corbitt told U.S. District Judge David S. Cercone.
His attorney, Stanley Greenfield, told the judge that "there will be explanations with regard to why and under what circumstances he took those items." He declined to elaborate.
Mr. Corbitt pleaded guilty to one count of tax evasion. He was released on bond pending an April 17 sentencing.
The Internal Revenue Service Criminal Investigation Division investigated the case. The IRS is also expected to pursue payment of the taxes due, potentially through civil court, Mr. Kaufman said.
Twenty years ago, Mr. Corbitt was sentenced to 18 months in prison for theft of government property and false statements, and ordered to pay $192,641 in restitution to the Department of Health and Human Services.
Rich Lord: firstname.lastname@example.org or 412-263-1542. Twitter: @richelord.