Birmingham Man Pleads Guilty To Tax Evasion

BIRMINGHAM, AL — A 70-year-old Birmingham man pleaded guilty to tax evasion this week in federal court. John P. Cooney faces a statutory maximum sentence of five years in prison, according to U.S. Attorney Jay Town.

Court records show Cooney filed delinquent tax returns for 2008 through 2010, in which he admitted that he owed the Internal Revenue Service approximately $780,000, but did not include any payment.

Rather, to evade his tax obligation, Cooney created a nominee entity, GVA Advisors, LLC, and directed that income from his employer and dividends from his investments be paid to an account in GVA’s name, rather than to him directly, Town said.

From 2013 through 2016, Cooney reportedly deposited more than $435,000 into the GVA account, concealing the funds from the IRS. By 2017, Cooney owed more than $1.3 million in outstanding balances, penalties, and interest to the IRS, court documents show.

Pursuant to the plea agreement, Cooney has agreed to pay restitution of $1,311,904.