facebook
twitter
rss
account
search
search
 

Businessman deducted taxes for prostitutes

Nov. 13, 2008 at 1:42 PM   |   Comments

CHARLOTTE, N.C., Nov. 13 (UPI) -- A Charlotte, N.C., businessman was sentenced to 18 months probation for hiring prostitutes and writing their services off as business expenses, a court says.

The Charlotte (N.C.) Observer Thursday said James Smith avoided a possible three-year prison sentence after pleading guilty to charges he claimed the prostitution fees as deductions on his corporate income taxes.

The owner of the Red Clay Aggregate construction company pleaded guilty in August to tax fraud in relation to allegations he claimed the prostitutes' services as advertising expenses.

Smith's crimes were uncovered during a federal investigation into the Charlotte prostitution ring known as "HushHush."

The services Smith admitted to writing off his company's taxes took place between 2002 and October 2007 and allegedly involved Soft Touch Promotions and SW Associates.

Both companies allegedly served as shell companies for "HushHush," whose madam, Sallie Saxon, has been sentenced to two years in prison on related charges.

The Observer said Smith will serve the first half of his sentence under home confinement.

Topics: James Smith
© 2008 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Most Popular
1
Russian currency crashes Russian currency crashes
2
Survey: Harvard Law grads earn the most of any grad school in the country Survey: Harvard Law grads earn the most of any grad school in the country
3
GenDyn UK picks Lockheed Martin for vehicle turrets GenDyn UK picks Lockheed Martin for vehicle turrets
4
Lockheed Martin, Roketsan collaborate on F-35 cruise missile Lockheed Martin, Roketsan collaborate on F-35 cruise missile
5
Hatchet-wielding man shot dead after attacking NYC police officers Hatchet-wielding man shot dead after attacking NYC police officers
Trending News
Around the Web
x
Feedback