Developers sentenced for tax evasion
Published: April 27, 2011 01:30PM
Updated: April 27, 2011 01:30PM

Two Duchesne County developers charged with refusing to pay the state more than $3.1 million in taxes have been ordered to spend a year in jail and pay restitution for the crime.

Frank “Joe” Steed, 65, and his ex-wife, Joan A. Steed, 62, were arrested in 2008 by Utah State Tax Commission agents. The two were each charged in 3rd District Court with four second-degree felony counts of tax evasion, four third-degree felony counts of failure to render a proper tax return and one second-degree felony charge of pattern of unlawful activity.

The Steeds developed a 5,000-acre subdivision in Duchesne and received $20 million between 2003 and 2006, according to charging documents. The two took actions to evade their tax obligations by dealing in large amounts of cash, holding funds in third-party names and setting up multiple businesses in which large transfers occurred without apparent business purposes, charges state.

Judge Robin Reese this month ordered Frank Steed to a year in jail and six years of probation. He was ordered to pay fines and restitution in the amount of $10,122 plus interest, according to court documents. Joan Steed was ordered to 180 days in jail and six years of probation. She must pay a $140,298 fine. Her restitution includes amounts listed at $43,515, $88,289, $104,403, $42,107 and $2,281 — plus interest, according to court documents.