Plea Deal For Rapper DMX On Tax Fraud

Rapper DMX, who was reportedly released from home confinement in a New York tax evasion case in August to seek treatment for drug use in New Hampshire as part of a plea deal, has pleaded guilty to one count of tax fraud. Federal prosecutors said he owes about $1.7 million in taxes.

DMX, the internationally known recording artist, performer, and actor whose legal name is Earl Simmons, had pleaded not guilty in July to 14 counts: one count of corruptly endeavoring to obstruct and impede the due administration of Internal Revenue Laws, one count of evasion of payment of income taxes, six counts of evasion of assessment of income tax liability and six counts of failure to file a U.S. individual income tax return.

The one count of tax fraud to which the Westchester County resident has pleaded guilty covers evading the payment of income taxes from 2010 through 2016. In total, during that time period, Simmons engaged in a scheme to conceal millions of dollars of income from the IRS.

DMX is perhaps known most for his 2003 hit "X Gon' Give It To Ya."

Simmons, performing as DMX, made millions from his chart-topping songs, concert performances and television shows, said Acting U.S. Attorney Joon H. Kim.

From 2002 through 2005 he incurred federal income tax liabilities of approximately $1.7 million. Those liabilities went unpaid, and in 2005, the IRS began efforts to collect.

From 2010 through 2015, Simmons earned over $2.3 million, but did not file personal income tax returns. Instead, prosecutors said, he orchestrated a scheme to evade payment of his outstanding tax liabilities, largely by maintaining a cash lifestyle, avoiding the use of a personal bank account, and using the bank accounts of nominees, including his business managers, to pay personal expenses. For example, he received hundreds of thousands of dollars of royalty income from his music recordings. He had that income deposited into the bank accounts of his managers, who then disbursed it to him in cash or used it to pay his personal expenses.

He also participated in the “Celebrity Couples Therapy” television show in 2011 and 2012 and was paid $125,000 for his participation. When taxes were withheld from the check for the first installment of that fee by the producer, he refused to tape the remainder of the television show until the check was reissued without withholding taxes.

He took other steps to conceal his income from the IRS and others, including by filing a false affidavit in U.S. Bankruptcy Court that listed his income as “unknown” for 2011 and 2012, and as $10,000 for 2013. In fact, SIMMONS received hundreds of thousands of dollars of income in each of those years.

When he filed for bankruptcy in 2013, he listed a half-interest in a local residence on McLain Street near the Mount Kisco-Bedford border that was worth $453,702.

A year ago, DMX was reportedly living in Rhode Island. In January, the owners of a Rhode Island kennel said he abandoned his dog because he was apparently going on tour.

According to the prosecutors' announcement Thursday, the 46-year-old is living in Yonkers.

He faces a maximum sentence of five years in prison. As part of his plea agreement, Simmons is also required to pay restitution to the IRS. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentence will be determined by the judge. He is scheduled to be sentenced by Judge Rakoff on March 29, 2018.

SEE ALSO:

• Rapper DMX Accused Of Tax Fraud
• Rapper DMX, Local Resident, Files for Bankruptcy
• Rapper DMX Claims Woman Stole $30K Watch
• Rapper DMX Dumps 'Sweet' Dog At RI Kennel
• Rapper DMX Reportedly In NH For Drug Treatment

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