Drug Dealer’s Girl Guilty of Tax Fraud

Here’s a new one: A high-speed pursuit leads the IRS to a tax fraud case and a guilty plea.

According to Asst. U.S. Attys. Anne Pings and Jill Thomas, Olivia K. McCormick, 47, of Sacramento, Calif., was originally arrested in May 2006 after her boyfriend, Michael Slaton, fled from officers of the Sacramento Police Department who had arrived at McCormick’s residence to execute a search warrant.

After leading the police on a high-speed vehicle chase, Slaton crashed his own car and eventually was running from the police on foot, dropping large quantities of crack cocaine as he ran. The officers found more crack cocaine in McCormick’s house. Slaton was sentenced in February to 18 years in prison.

At the time of that arrest, Slaton had just been out of federal prison a short time after having been arrested in 1993 and sentenced to serve 14 years in federal prison. After the arrest of Slaton, federal authorities learned that while Slaton was in prison serving that 14-year sentence, McCormick had been declaring him on tax returns from 2001 to 2003 as a dependent in order to reduce her taxes. She falsely identified Slaton as her “nephew” instead of her boyfriend. During that time, McCormick was not providing any support for Slaton. Instead, during that time all of Slaton’s shelter, clothing, food, medical care and other support were being provided by the United States Bureau of Prisons.

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