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During this time, Mrs. Beatty was not aware that her
husband was not filing federal or state income tax
returns. She had no reason to inquire about the fi-
nances, and always assumed that her husband was han-
dling everything. If she inquired about any particular
financial issue, Mr. Beatty always told her not to
worry about anything, that he had everything under
control. Mr. Beatty would give her money when she
needed it to buy groceries or other miscellaneous
items. She never reviewed any correspondence or spoke
with, any government agents or tax professionals about
her husband’s financial problems. She never negotiated
her husbands’s business contracts, accepted payment
from people he worked for, or discussed the business
finances.
In April 1993, the Beattys moved into a townhouse in
Ocean City, Maryland. Mr. Beatty told Mrs. Beatty that
they owned the property, and Mrs. Beatty went about
fixing it up as necessary. In fact, Mr. Beatty had
negotiated with someone for whom he worked on a regular
basis to rent the property with an option to buy.
Approximately 3 years later, the Beatty purchased the
property. Mr. Beatty explained to Mrs. Beatty that she
just needed to sign the papers to make their ownership
“official.”
The Beattys did not maintain joint bank accounts. The
Beattys’ vacations have been limited to short trips to
nearby locations, which they can drive to and stay a
few days in an inexpensive hotel. Their only vehicle
is a 1996 Chevy conversion van, which is owned by Mr.
Beatty. They do not drive luxury vehicles, do not have
any investments, do not have life insurance policies,
and do not maintain any saving or retirement accounts.
They do not own expensive artwork or collectibles, or
live an extravagant lifestyle. Mrs. Beatty has no
idea, even today, how much her husband is earning, or
the amount of his business expenses. She does not know
the cost of monthly household expenses.
In 1999, Mr. Beatty was charged with willful failure to
file state income tax returns for 1995, 1996 and 1997.
He pled guilty on May 8, 2000. On September 8, 2000,
he was sentenced to 5 years on each count, with the
entire sentence suspended, and 5 years supervised
probation. As a condition of his probation Mr. Beatty
was required to file all federal and state tax returns
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Last modified: November 10, 2007