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Cape citizen guilty in federal IRS case

By Staff | Jul 23, 2009

A local muscle car dealer pleaded guilty to federal crimes against the Internal Revenue Service in a Fort Myers U.S. District courtroom Wednesday.
James H. Rose Jr., a Cape Coral resident and owner of Rose Motorsports Inc. in Fort Myers, pleaded guilty before U.S. Magistrate Douglas N. Frazier to one count of causing a nonfinancial trade or business to fail to file a report relating to the receipt of currency.
Documentation of a plea agreement between Rose and the United States government indicates that he agreed not to file the appropriate paperwork on a cash transaction by an undercover IRS agent Oct. 3, 2007.
The agent agreed to purchase a 1972 Oldsmobile Cutlass for $14,450, but said he wanted to pay cash and did not want paperwork filed with the IRS.
According to documents, the agent told Rose during the transaction process, “I ran into some problems a couple of years ago with the IRS. I don’t want any more problems with them.”
Documents state that Rose accepted the terms of the purchase, telling the agent to “put any amount” on a bill of sale when he registered the vehicle.
“Technically, here’s the law, if you buy a car for over $10,000, you’re supposed to report the money that you received,” Rose reportedly told the agent. “I don’t, but you’re technically supposed to.”
“This is just between me and you, and not the IRS?” the agent asked.
“Yep,” Rose reportedly responded.
Rose failed to file a Form 8300, which, according to the IRS Web site, is required when businesses receive a cash payment $10,000 or more for a single transaction or two or more related transactions.
The United States District Attorney’s Office stated that Rose’s business has never filed a Form 8300 with the IRS.
He faces a maximum sentence of five years in prison without parole, a $250,000 fine, a term of supervised release and a $100 special assessment.
Rose must also forfeit $14,450, the amount of the unreported cash purchase for which Rose is charged.
A sentencing date was not set Wednesday, but he will be sentenced within a 90-day period.
Rose was released of his own recognizance Wednesday following the hearing.