Former Burlington Coat Factory Vice President Pleads Guilty to Tax Evasion

A former vice president at Burlington Coat Factory admitted that she used her position to evade income taxes by approving payments to a shell company she created, U.S. Attorney Paul J. Fishman announced on Thursday.

Barbara Ames, 53, of Mt. Laurel, pleaded guilty to an information charging her with one count of tax evasion.

Ames was hired to serve as the company’s vice president of talent acquisition in 2007, according to documents filed in the case and statements made in court.

Ames was responsible for recruiting and hiring all executive management positions within Burlington Coat Factory, including store management, corporate management and field management.

As part of her job duties, Ames was responsible for working with vendors and suppliers associated with her position. Burlington Coat Factory used outside companies, or “headhunters,” to identify and recruit qualified applicants for open positions.

Ames had sole authority to approve payments to headhunters working on behalf of Burlington Coat Factory.

In 2008, Ames established L. Castillo LLC using her mother’s name and Social Security number. Ames admitted that between 2008 and 2012, she performed headhunting services under the name of L. Castillo on behalf of Burlington Coat Factory.

Afterwards, Ames generated invoices from L. Castillo and submitted those invoices to Burlington Coat Factory for payment, which she then approved in her position with Burlington Coat Factory.

From Aug. 4, 2008 through Nov. 2, 2012, Ames caused Burlington Coat Factory to issue approximately 46 checks, totaling $466,290, to pay L. Castillo invoices. Ames later used these funds for personal expenditures.

Ames admitted that, from 2009 through 2012, she failed to include her income from L. Castillo, which caused a tax loss of $143,877.

Ames faces a maximum potential penalty of five years in prison and a $250,000 fine.

Sentencing is scheduled for Feb. 1, 2016.