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Owner of Trinity Steelworks indicted on tax evasion charges

Published: Sep. 21, 2021 at 1:12 AM CDT
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ALVATON, Ky. (WBKO) - Agents with the Internal Revenue Service: Criminal Investigations have indicted John Paul Cates, age 48, of Alvaton on September 15, charging him with evading paying employment taxes, for tax years 2014 to 2017.

Trinity Steelworks LLC, is in Scottsville and in the indictment it is alleged that Cates evaded paying employment taxes due for Trinity. It is alleged that this was done by creating other corporations and placing them in nominee names to conceal control, utilizing bank accounts of a family member and other corporations to transfer funds out of Trinity, paying over $285,000 in personal expenses from Trinity, and transferring of business and personal real estate to nominee companies, said authorities.

“Employers have a responsibility to their employees to withhold the proper amount of taxes and pay those taxes over to the IRS,” said IRS-CI Special Agent in Charge Bryant Jackson, “when employers fail to do so, it affects revenue to the United States government, but more importantly, it affects their employees’ Medicare and Social Security benefits.”

If convicted, Cates’ sentence will be determined by the Court. The case is being prosecuted by the U.S. Attorney’s Office for the Western District of Kentucky.

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