SPRINGFIELD, Ill. (WCIA) — A local man will spend 18-months in prison after pleading guilty to filing false tax returns and failing to report $1.15 million in income.
Gregg Harwood, 60, formerly owned Thermionics; a company which manufactured hot/cold pain therapy products.
Prosecutors say, in November 2007, Harwood “created various multi-level entities with no legitimate business purposes, which he used to divert and disguise income he received from Thermionics.
Harwood used the resulting tax free income to support his personal lifestyle.” In addition to the prison sentence, Harwood must pay a fine of $50,000, serve one year of supervised release including six months of home confinement and perform 20-hours of community service.
As provided in the plea agreement, Harwood paid $447,528 to the IRS and $250,000 to participants in Thermionics’ employee stock ownership plan.
Harwood remains free on bond pending receipt of the date and location he’s to report to the federal Bureau of Prisons.