A judge sentenced Jarrod C. Breeding, the owner of Southern Steel Recycling in Isom, on Tuesday for making false statements on tax returns filed with the IRS.
Breeding previously admitted that, for tax years 2011, 2012, and 2013, he underreported his income by more than $5 million.
Under federal law, domestic financial institutions must report any cash transaction at their institution that exceeds $10,000. Breeding underreported his income, in part, by structuring transactions, to avoid this $10,000 limit. This resulted in large amounts of money never being included on his bank statements. Then, when filing his tax returns, Breeding only reported the income that was actually included on his statements.
Breeding, who also owns 201 Speedway Racing in Sitka, Ky., pleaded guilty in November 2016.
Under federal law, Breeding must serve at least 85 percent of his 30-month sentence