Colleyville father and son imprisoned for tax evasion

Posted Thursday, Jul. 18, 2013  comments  Print Reprints
A

Have more to add? News tip? Tell us

Two Colleyville men received prison sentences and fines Wednesday on tax evasion and other tax-related charges.

Larry Lake, part owner of Grapevine Drug Mart, and his son, Travis Lake, who managed the drug store, each failed to report income on their federal tax returns, according to a news release from the U.S. Attorney’s office.

Larry Lake was sentenced to 14 years in prison and ordered to pay a $550,000 fine as well as taxes, interest and penalties, which equal about $25 million, the release said.

Travis Lake was sentenced to one year and one month in prison and ordered to pay a $30,000 fine after he pleaded guilty in February, the release said. Travis Lake paid nearly $27,000 in restitution prior to sentencing, according to federal officials.

The scheme apparently occurred over several years, federal officials told jurors during Larry Lake’s trial in February.

A day before Lake filed for bankruptcy in November 2004, he “knowingly and fraudulently” transferred more than $3 million from an E-trade account and a Compass bank account, federal officials said. He later transferred the funds through a series of bank deposits, wire transfers and cashier’s checks and used a shell company to conceal the assets, officials said. A shell company is a company that exists but does not actually do any business or have any assets.

From August 2006 to November 2009, Larry Lake and his spouse, Kathy Lake, agreed to structure hundreds of currency deposits into at least 13 bank accounts, according to a federal indictment. The couple created at least two shell companies that were used to open up the accounts involved in the structuring scheme, which amounted to $9.3 million, federal officials said.

In related cases, two pharmacists at Grapevine Drug Mart, have also pleaded guilty to tax evasion, according to court documents. Norvell Moss failed to report more than $194,000 in income he received from Grapevine Drug Mart for tax year 2008. Norville Moss was sentenced to 18 months in prison and ordered to pay $8,277 in restitution as well as a $30,000 fine in May, the release said.

Another pharmacist, Joseph Moss, failed to report more than $159,000 in income he received from Grapevine Drug Mart for tax year 2008. He was sentenced to one year and one day in prison and ordered to pay $51,150 in restitution and a $3,000 fine in June, the release said. Norvell Moss is the father of Joseph Moss.

This report includes material from Star-Telegram archives.

Mitch Mitchell, 817-390-7752 Twitter: @mitchmitchel3

Looking for comments?

We welcome your comments on this story, but please be civil. Do not use profanity, hate speech, threats, personal abuse, images, internet links or any device to draw undue attention. Our policy requires those wishing to post here to use their real identity.

Our commenting policy | Facebook commenting FAQ | Why Facebook?