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Missouri Accountant Gets Prison Term For Tax Evasion, Fraud
Harriet Davies
12 September 2011
An accountant based in Springfield, Mo, who operated a firm know as the Hubbard Group, has been handed a 42-month prison sentence for mail fraud and tax evasion. Murphy Hubbard, a CPA, was given the sentence after pleading guilty to two counts of mail fraud and one count of tax evasion. It was imposed by District Court Judge Ortrie Smith in the Western District of Missouri. Hubbard embezzled over $400,000 from two trusts placed under his control by local families between 1998 and 2009, according to the Justice Department and Internal Revenue Service. The first of these trusts was created by Hazel Beatrice Hirst, and designated four local charities as the beneficiaries of her life savings. The second trust was created by Noel Rummens specifically to pay for the education of his surviving heirs and relatives. However, Hubbard used the vast majority of the money for personal purposes, including automobiles, farm equipment and travel. He also didn’t report the money taken from the trusts to the IRS, resulting in a tax loss of around $79,434. As well as the prison sentence, Hubbard has been ordered to pay full restitution to the victims as well as the tax owing.