Raleigh Businessman Pleads Guilty To State Tax Charges

Date:  June 13, 2007

RALEIGH – A Raleigh businessman pleaded guilty Tuesday in Wake County Superior Court to felony tax charges filed by the North Carolina Department of Revenue.

Craig Allen McGannon, 41, of 4066 Pine Ridge Road, Franklinton pleaded guilty on June 12, 2007, to five counts of felony tax evasion.

Superior Court Judge Ronald L. Stephens sentenced McGannon to five consecutive six-month minimum, eight-month maximum prison terms. The sentences were suspended and McGannon was placed on probation for 36 months. He will serve the first six months on intensive probation and will be transferred to unsupervised probation after 12 months. McGannon paid $88,412.30 in restitution before his court appearance and was ordered to pay a $1,000 criminal fine and court costs and to perform 100 hours of community service.

An investigation by a special agent with the North Carolina Department of Revenue found that during 2004 and 2005, McGannon, who was serving as chief executive officer and responsible corporate officer of The Solutions Group, LLC, located at 333 Fayetteville St., Raleigh willfully underreported the sales tax charged and collected by the business and income tax withheld from employees’ wages. The company has performed copy services for law firms and corporate legal departments in NorthCarolina since 2004.

The charges against McGannon resulted from an investigation by a special agent with the Department’s Criminal Investigations Division in Raleigh.

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