Millionaire Tax-Evader and Medicaid Thief Goes to Jail!

Posted on January 24, 2022

Jeffrey Scott Allen, a Missouri businessman, pleaded guilty to tax evasion for underreporting his income from 2012 to 2017.

Allen’s business provides installation services for satellite based Internet and television, and he contracts labor with five different contractors. He claims an annual profit of 2.1 million dollars, and takes a $6,000 monthly draw from the company.

In order to avoid paying taxes, Allen grossly underreported his net income from the business and paid the majority of his family’s personal expenses through the company. He lowered his taxable income by so much that he was able to qualify for federal benefits for his family, including $15,856 in Medicaid for three of his children, $4,392 in free and reduced school lunches, and $35,453 in federal student aid under the Pell Grant program.

Allen was sentenced to two years in prison without the possibility of parole, and was ordered to pay $758,517 dollars in restitution. He’s also required to pay back federal and state agencies for the services received from Medicaid, the school lunch program, and the Pell Grant.