Walraven brothers get 40-month, 43-month prison terms, respectively, for tax evasion
By Cindy Cranmer on Oct 30, 2009 in Clare County-wide, Crime, Featured
BAY CITY – Two local Harrison businessmen were sentenced to prison time Monday on tax evasion charges despite letters from community members pleading for leniency for the brothers due to their civic involvement.
Timothy Walraven, 48, and William Walraven Jr., 45, are the owners and president and vice president, respectively, of Country Garden Fruit Markets in Harrison and Cadillac along with being owners and partners in Walraven’s Car Wash. They owned four car washes in Harrison, Gladwin and Beaverton.
Judge Thomas Ludington sentenced the men in the U.S. District Court for the Eastern District of Michigan on two charges as part of a plea agreement reached Jan. 13. The Walravens were sentenced on one count of conspiracy to defraud the Internal Revenue Service through income tax evasion and one count of income tax evasion. The remaining four charges of tax evasion against the brothers were dismissed.
Timothy Walraven also had four counts of filing false corporate tax returns, signed under penalty of perjury, and a charge of aiding and abetting the creation of structured transactions to evade reporting requirements dismissed.
William Walraven also had a charge of filing a false partnership tax return, signed under penalty of perjury, dismissed.
Timothy Walraven was sentenced to 40 months in prison while William Walraven was sentenced to 43 months. Both brothers were sentenced to completion of a substance abuse treatment program, a financial responsibility program, three years of supervised probation, ordered to pay the cost of prosecution of $10,000 and more than $600,000 in restitution to the IRS. It was determined the restitution will be more than two million dollars with penalties and interest. The exact amount will be determined by the IRS.
The prosecution cost will be determined before the Walravens pay that amount as it was disputed whether they are responsible for $10,000.
William’s attorney, Eric Nemeth, argued a minor offense from years ago changed the sentencing guidelines to 41 to 51 months for him.
“What emerges here is two close brothers with community, friends and family support,” Nemeth said. “It was an incredible blindspot and lapse in judgment.”
Nemeth said William’s family also has suffered as he has three minor children and his wife had to leave her school board position. “He has to face of a loss of reputation, the family business and legacy, assets and his liberty,” Nemeth argued. “He will be a convicted felon with all that conveys … He will never be able to hunt with his children again. That rite of passage that was lost will be a reminder every fall.”
“He admitted to everyone that is was wrong and accepted responsibility,” said Walter Piszczatowski, attorney for Timothy. “Mr. Walraven is a productive member of society. He’s a good family man.”
Numerous letters were submitted to Ludington showing support for the Walravens as well as more than 40 friends and family members showing up to court.
Despite pleas Timothy Walraven is being punished financially, by losing his reputation, by hurting his family and other ways, Ludington followed the sentencing guidelines of 37 to 46 months.
“I know what I did was wrong … I never wanted to hurt anyone. Now I have hurt my family, friends, the community,” Timothy pleaded. “I’ve learned my lesson and if I get a second chance you’ll never see me back here.
“There’s not really a lot left to say,” William Walraven said. “I wish there was a way to punish me without punishing everyone else.”
“The impact often falls as much on family and friends,” Ludington said. “The other justification was to provide the Walravens with time to adjust to the custodial sentence.”
The prison sentence for each of the Walravens will begin after Jan. 4, 2010 so the families can adjust to running the businesses without the brothers and financial records can be put in order.
“Not only is it a matter of not paying the full taxes, but the gravity of this is large,” Ludington said. He said when the search of the Walrvavens’ houses took place, there was more than $1,023,000 seized at Timothy’s house and $329,000 at William’s.
U.S. Attorney Barbara Tanase said the loss of reputation, burdens to the family and other consequences were not unlike other defendants. She said despite being charitable and good community members, the Walravens had committed the crimes over the course of 14 years.
“You have been a good husband, father, friend and neighbor. You will have that second chance,” Ludington said. “We need to confront the gravity of this offense.”
Timothy and William Walraven were president and vice president, respectively, of Country Garden Fruit Market Inc,. with locations in Harrison and Cadillac, along with being owners and partners of four Walraven’s Car Washes.
U.S. Attorney Terrence Berg stated they engaged in other business activities which included the purchase and selling of heavy construction equipment and trucks, sale of real estate and loaning money to third parties.
Between 1991 and 2008, the Walravens skimmed income from the fruit market and hoarded large amounts of currency in their personal residences.
During tax years 2001 through 2005, Timothy received taxable income of at least $738,359, while reporting $159,872 to the IRS, Berg said. Between 2001 and 2005, William’s taxable income was $629,952.03 when he reported $50,465 to the IRS.
“Skimming cash and concealing it from the IRS is a clear violation of the obligation to report income. Our system of federal income taxes relies upon the honesty, integrity and voluntary cooperation of every American,” Berg said.
“They’re very remorseful for what happened,” Nemeth told The Clare Sentinel after the hearing. “The family will move on. The goal is to keep the businesses open and people employed in the community.”
Doug Rose | Nov 2, 2009 | Reply
This is the best written and most complete article I have read on this issue. If you do the crime,you should expect to do the time.
Common Sense | Nov 9, 2009 | Reply
I totally agree. They have cost the taxpayers a lot of money and taxing our prison system now. It is apalling to watch them drive their Hummers, snowmobiles, and all their other toys and their not so modest homes all the while robbing the government blind. NOW they are sorry, I am sure they are sorry they were caught, not because of the crimes they committed. 15 years of robbery and I am sure it would have kept on going until they couldn’t get away with it anymore. If they are embarassed and the family is suffering, well I am sorry, but for every crime there is punishment.
M e | Nov 12, 2009 | Reply
So what will happen to all of the money that was skimmed of the top? Are they going to donate it to the local schools. I would assume such productive members of society would have no qualms in helping their community. Especially since they have been not been paying their fair share of taxes in recent years. $2 million is a lot of money to payback, but to a guy that has 1.02 million in a safe at home it should be like pocket change. I just hope their time fits the crime. If its a fancy low security prison with knitting classes I will be utterly disappointed with the Justice system…
LM | Nov 16, 2009 | Reply
Well, rumor has it they are going to a “special” prison in Wisconsin. Thats our system for us!
tyler | Jan 6, 2010 | Reply
Your an idiot those are great people and you would have done the same thing if you were in there position. I dont know about you but as hard as they work and to have the govt take 40% of it is ridiculous.
KR | Jan 9, 2010 | Reply
These folks got exactly what they deserved. They flaunted their wealth in the faces of everyone around Harrison and now they can pay the consequences. They gained a huge advantage running a business with no tax overhead costs. Greedy, cowardly thieves is all I see in them. How could anyone ask the court to have mercy on these two? They stole the community blind.
BM | Jan 20, 2010 | Reply
I just have to comment on what Tyler stated. They may be hard working people but they stole money from every man, women and child in this country. And, if I were in there position….I would have paid my taxes! Do you think they are the only tax payer that has to pay 40%?
NDN | Jan 26, 2010 | Reply
I heard Tim went to Mn, Billy went to WV
Doug Rose | Jan 27, 2010 | Reply
Have the Walraven brothers reported into prison yet or are they still playing the system?
ch | Feb 25, 2010 | Reply
finally they got some what of a prison sentence if that would of been a normal hard working person like you and me we would of received 5yrs or more. but of course they for the most part still coming out smelling like a rose.
Deb | Mar 1, 2010 | Reply
Our family has owned property in Clare County for twenty years and the taxes have been paid faithfully. Walravens did not just steal from the “community” they committed a crime against everyone who has ever spent a dime in any of the towns where they do business. They are a disgrace to the “hard working, law abiding” citizens of the entire state. The time they recieved is a slap in the face to those of us who have always done the right thing. It appears that crime really does pay…or at least it does in Clare County. Their family feels no shame or remorse, they feel only ENTITLEMENT. Our property in Harrison was sold last year and yes, we paid the taxes from any gain on it. Glad to be out of such a poor, burdened and corrupt county. It has been that way for years and it will never change until the voters and residents change it. WAKE UP HARRISON AND SMELL THE COFFEE.
Jim | Mar 4, 2010 | Reply
Where is all this call for justice when it comes to issues at the National level. People that work for the OBAMA adminstration havent paid taxes and its ok? Not one person seems to be “Outraged” with this. You just let it go on and nothing gets done. Someone at the local level does it and a whole community is up in arms. THis isnt fair half of the current Cabinet and admin have openly said they just forgot about their taxes, and you people on here are worried about local levels not paying. Come on wake up. People that are elected openly admit this and receieve no jail time, just slaps on the wrist and promises not to do it again. Why arent you worried about them?
Dan Hostetler | Mar 9, 2010 | Reply
If anyone has anything bad to say about the walraven’s, they do not know them.
I am sure that all of the comments about tax evasion,that everyone reported Christmas gifts, and car purchase rebates to the IRS.
I pledge allegiance to the flag of the United States and to the democracy for which it stands.one nation under ? with ? and ? for all.
heather | Mar 11, 2010 | Reply
Well Tim and Bill Walraven just happened to piss off the wrong person in Harrison, and that was their downfall… they did their deeds and when they get back to Clare county they won’t be the charitable, friendly folks they once were. Their money bought all their friendships here, the Government will be watching the Walravens, the sons, the wives, their bank accounts for the rest of their lives. Any one associated with them has the Feds watching them also, so BEWARE!
xena | Mar 22, 2010 | Reply
they should have gotton alot more prison time like 15 yrs
xena | Mar 22, 2010 | Reply
iam sure the wifes had to know no one could be that blind and they got away with it they should be run out of town
Visiom | Apr 20, 2010 | Reply
Sounds like you might be sleeping in the same bed with these crooks.
They admitted to guilt, Said Sorry! So that should be enough?
Can you imagine if they only found one third of the money.
in 2031 it will cost $297,000 a year to take care of a prisoner.
Cost about $181 a day to supervise an average state prisoner
As a tax paying citizen of Michigan and a resident of Harrison
The worst part though, is that while inflation really is only about 3% a year, the cost per inmate is increasing by 6.2% per year, and the number of prisoners is growing at a rate of 3.4% per year while the US population is only growing by 0.9% per year, so the percentage of prisoners is getting higher
In another four to five years each one of those crooks will cost me more than I want to pay out.
For those who sympathize must be with this unacceptable behavior you must have some of the hidden money