TheTimesTribune.com, Corbin, KY

June 14, 2013

Doctor gets 18-months in federal tax evasion case


The Times-Tribune

CORBIN — By John L. Ross / Staff Writer

A London doctor who worked in Eastern Kentucky and Tennessee was sentenced by Judge Gregory Van Tatenhove in U.S. District Court in London Thursday.

Werner Grentz, 64, will spend 18 months in prison, followed by six months of home incarceration for federal income tax evasion, according to Kyle Edelen, spokesman for U.S. Attorney Kerry B. Harvey.

Edelen added that Grentz was also ordered to pay the Internal Revenue Service approximately $900,000 in back taxes owed from the years 1999-2010.

As part of a plea agreement, Grentz pleaded guilty to the charge in January. He was facing a six-count indictment filed in April 2012, which could have landed him as much as five years in prison.

Grentz admitted he evaded more than $900,000 in federal income taxes. While working as an independent physician contractor for a Jellico, Tenn., hospital, Grentz admitted he earned $356,073 in taxable income in 2009. To hide his income, Grentz had his earnings deposited into bank accounts of companies he controlled. He failed to file a tax return or pay federal income taxes.

Grentz was indicted April 6, 2012 by a grand jury. According to the indictment, Grentz earned more than $1.5 million from 2005 to 2010 but failed to file a federal income tax return since 1999.

“Under federal law, Grentz must serve 85 percent of his prison sentence,” Edelen said. “Following his release, he will be under the supervision of the U.S. Probation Office for three years.”

The investigation preceding the indictment was conducted by the IRS, Criminal Investigation Division. The United States is represented in the case by Assistant United States Attorney John Patrick Grant. Grentz was represented by Attorney Michael Murphy.