The former owner of a Texas injection molding company, Richard Simkanin, has been sentenced to seven years in prison for not withholding taxes from his employees and for filing false tax returns.
Simkanin, former owner of Arrow Custom Plastic Inc. in Bedford, Texas, attracted national media attention for his prominent role with groups challenging the federal tax system. He spoke at conferences and in 2001 put his name on a full-page ad in USA Today.
He was sentenced April 30 in federal court in Fort Worth for violating 29 counts of tax laws. He was ordered to pay $302,000 in restitution.
Simkanin first pleaded guilty in September, but that plea agreement collapsed. The case then went to trial in November, but the jury could not reach a decision and the judge declared a mistrial. He was convicted in a second trial, in January.
He sold Arrow Plastic in March to James Keffer, owner of a Dallas-based orthopedic product supply house, Orthobionics Inc., which had sold some products made by Arrow.
Keffer said he wanted to focus on regaining customers that Arrow lost during Simkanin's legal problems. The new Arrow does not have any financial liability for Simkanin's tax problems, Keffer said.
Simkanin's lawyer, Arch McColl, told the Houston Chronicle that he plans to appeal.