The former chief executive of a Nevada sports energy drink company has been indicted on tax evasion charges.
Xyience CEO Russell Pike, of Las Vegas, is charged with one count of tax evasion for failing to file a federal individual income tax return for 2006 and failing to pay taxes on more than $6.9 million in income he earned in 2006. Pike is also charged with using nominees and a forward-dated stock sale agreement to conceal his true income from the IRS.
Pike founded Xyience, which manufactured, marketed and sold sports energy drinks — most notably, Xenergy — which was sold in more than 45,000 stores throughout the United States. The indictment alleges that upon the inception of Xyience in 2004, Pike received at least 12 million shares of Xyience stock. During 2006, Pike sold more than 4.4 million shares of his Xyience stock for approximately $6.9 million.
In June 2006, Pike listed his income as $100,000 plus on a brokerage account application. In July 2007, Pike listed his assets as $27 million and his liabilities as $2 million on a life-insurance application. In September and November 2006, Pike purchased a condominium in Las Vegas which was titled in the name of a nominee and made payments on a 2005 Lexus SUV that was held in the name of a nominee.
If convicted, Pike faces up to five years in prison and a fine of up to $250,000.
Avoiding taxes can cause you a headache, prison time and massive fines. Be smart about your taxes – don’t cheat on your taxes! If you feel overwhelmed by tax debt and are seeking relief, you are on the right track. We are a team of tax attorneys and tax specialists from Tax Resolution Services. Seek tax help at 1-866-IRS-PROBLEMS (1-866-477-7762) or visit the Tax Resolution website for a free tax consultation.
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