By Joe Jarosz
Northeast News
June 24, 2015

KANSAS CITY, Missouri — The owner of an East Bottoms scrap metal business has been sentenced for tax evasion.

According to a press release from Tammy Dickinson, United States Attorney for the Western District of Missouri, Nellie Brown Boxx, 62, of Kearney, Mo., was sentenced to 18 months in federal prison without parole. The court also ordered Boxx to pay $366,846 in restitution to the IRS and the Missouri Department of Revenue. Boxx paid $50,000 of that restitution amount prior to yesterday’s hearing.

Boxx, owner of Frank Metal Company, 3301 Gardner Ave., pleaded guilty to tax evasion on Feb. 19, 2015. Boxx admitted that she assisted tax preparers to prepare tax returns that contained false information. Boxx classified purchases such as food items, drinks, jewelry, dry cleaning, household items and high-end clothing as business expenses for her scrap metal company.

According to the plea agreement, Boxx received $320,345 in taxable income in 2008, and owed $87,123 in federal income tax. The court-ordered restitution includes that tax loss, as well as additional relevant conduct. Boxx also admitted she submitted a false 2008 Form 1040 to a bank in order to receive a financial loan. Boxx admitted she made false statements to IRS agents, such as falsely claiming that business documents had been destroyed by water damage from a leak in the roof.