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Former Timberlanes owner indicted on tax crimes

September 28, 2012
By LARRY SHIELDS - Staff Writer , Salem News

SALEM - Former Timberlanes owner and general manager Melissa Snively-Pallard faces a seven-count indictment issued by a federal grand jury in Cleveland on Thursday.

According to Steven M. Dettelbach, United States attorney for the Northern District of Ohio, she is charged with failing to report and pay employment taxes owed by the corporation she previously owned.

The indictment alleges that Snively-Pallard, 33, currently of New Springfield, was the owner, president, chief executive officer and general manager of Timberlanes and that for the seven calendar quarters, between 2006 and 2007, she failed to report and pay to the Internal Revenue Service federal income taxes and Federal Insurance Contributions Act (FICA) taxes that Timberlanes withheld from its employees' wages, with a combined total of approximately $93,927.

Snively ran the restaurant and motel for several years in the early to mid-2000s. The business, which has been closed for several years, was purchased in a sheriff's auction this past July. Federal tax liens of $33,945, $602,809 and $348,346 were released from the property's record for that transaction.

The case was assigned to Judge Patricia Gaughan in Cleveland. If convicted she faces a maximum sentence of five years in prison.

An IRS spokesperson said an initial appearance by the defendant is expected soon.

Last March, Snively's father, Wade C. Snively, 58, of Canton, was charged in the Northern District of Ohio federal court with three counts of filing false income tax returns, two counts of corruptly endeavoring to obstruct and impede the due administration of the tax laws, and three counts of bankruptcy-related offenses.

The first three counts allege Snively made and subscribed joint income tax returns for 2005 through 2007 that were false in a number of regards. The fourth count alleges Snively corruptly endeavored to obstruct and impede the tax laws while the fifth count, related to the purchase of Timberlanes from Roy Paparodis by Snively, alleges a separate effort to obstruct and impede the tax laws by filing a false document with the IRS to retaliate against a person who successfully obtained a $330,475.10 monetary judgment against Snively and a trust controlled by Snively.

The indictment refers to the person retaliated against only as "RP" throughout the filing.

It states that RP brought the lawsuit to recover damages from Snively's and the trust's default on a note payable to RP in connection with RP's sale of a restaurant/inn business (Timberlanes Inc.) to the trust.

During RP's lawsuit against Snively and the trust, Snively falsely asserted that RP had indemnified him against RP's claim on the note.

After losing the lawsuit in December 2005, Snively prepared a false IRS Form 1099-C, Cancellation of Debt, falsely claiming that RP had $330,475 in debt forgiveness income in 2005.

The indictment said Snively sent a copy of the form to RP in January 2006, advising that he would be delivering it to the IRS.

After RP successfully collected on the judgment in August 2006, Snively submitted the false Form 1099-C to the IRS in September 2006, thereby seeking to subject RP to potential financial and other costs of an unwarranted IRS examination, investigation, tax assessment, or other adverse action with respect to that purported income.

The three bankruptcy-related counts charge Snively with making a false statement in a personal Chapter 7 bankruptcy he filed in 2006, concealing property from his creditors and bankruptcy trustee in that proceeding, and executing a scheme to defraud the creditors and trustee.

The IRS said Snively was originally indicted on March 28, 2012 but in May a superseding indictment was handed down with two additional counts of making false statements, and providing false information that supported fake documents submitted to the IRS.

Among the creditors he allegedly attempted to defraud was the Timberlanes seller, RP.

A principal aspect of the bankruptcy charges was Snively's effort to conceal his interest in and control over a company known as All American Health Care.

 
 

 

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