Former Kirkland, WA interior design business owner convicted of 20-year scheme to avoid paying taxes
August 17, 2018
Prosecutors say he weaved an intricate web including setting up shell companies, sending fake money orders and filing frivolous claims all to avoid paying taxes
(SEATTLE, WA.) – The owner of a Kirkland, Washington interior design business was convicted this month in U.S. District Court in Seattle of 25 counts related to a “nearly twenty-year scheme to avoid paying more than $560,000 in income taxes,” according to a statement released by U.S. Attorney Annette L. Hayes.
Jurors deliberated for just one day following a four-day trial before convicting Daniel Nix, 58, on August 10 of thirteen counts of tax evasion, eleven counts of providing fictitious financial obligations and one count of corrupt interference with the administration of the Internal Revenue Code.
U.S. District Judge Robert S. Lasnik scheduled sentencing for November 9th of this year.
According to the indictment and testimony at trial, Nix operates Dannix Design, an interior design firm for medical offices. The U.S. Attorney’s statement says:
“As early as 1998 and from 2000 to 2013, Nix refused to pay his taxes on $3.9 million in gross income, and $1.9 million in net profit. Nix sought to avoid more than $560,000 in federal income and self-employment taxes by setting up shell companies to hide his income and assets, by filing false bankruptcy claims, and by filing false claims against the government. For tax years 2010-2013, Nix continued to use a variety of strategies to hide his income and avoid any tax assessments. He set up sham religious entities and transferred assets into the names of those sham religious entities, in order to frustrate IRS efforts to put liens on his assets.”
“Nix enjoyed a lavish lifestyle with the proceeds of his crime. He owns a Kirkland home assessed for more than $1 million. He bought and owned at least 16 luxury vehicles over the years, including a Porsche, a Jaguar, a BMW, a Ford F-150, multiple Mercedes-Benz, Harley Davidsons, and other imported motorcycles.”
“In February 2013, Nix sent eleven fake money orders to the IRS to make it appear he was paying his tax obligations. The total face value of the eleven fake money orders exceeded a million dollars. On several occasions, Nix harassed IRS and Department of Revenue agents, filing fraudulent liens against them. He also called other unrelated individuals who were subject to IRS liens and falsely claimed the liens filed by the government were invalid.”
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI). The case is being prosecuted by Assistant United States Attorney Seungjae Lee and Mark Parrent.