Feds Charge Colleyville Pharmacist and Wife In Mammoth Tax Fraud Scheme [Updated]

Categories: Crime

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Larry Lake lives comfortably in a red brick McMansion in Colleyville with his wife Kathy, enjoying the fruits of a handful of successful businesses he owns. He's a licensed pharmacist and co-owner of the Grapevine Drug Mart. On the side, he established VIP Finance, an auto-title loan business with branches throughout DFW and Cash Auto Sales, an affiliated business.

The Lakes' situation appeared rosy until their spending apparently caught up with them, and, in 2004, the couple filed for bankruptcy. The proceedings dragged on for six years before they took a somewhat unexpected turn. One day in October, 2010, federal agents raided the Lakes' Colleyville home and seized $6 million in cash.

The government filed a motion in federal court seeking forfeiture of the assets but quickly backed off so as not to interfere with a potential criminal case against the couple.

That case was filed yesterday by the U.S. Attorney's Office. The Lakes are charged with a single count of concealing their assets in their bankruptcy hearing, nine counts of money laundering, four counts of tax evasion, and one count of conspiring to hide their alleged financial misdeeds from the government.

The Lakes' scheme, according to the indictment, wasn't particularly complicated. Lake would take the daily cash receipts from the businesses he owned and deposit them in a slew of bank accounts he and his wife had, always taking care to keep the transactions under $10,000 to avoid triggering banks' mandatory reporting requirements.

None of this was reported to the IRS. For the years 2006, 2007, and 2008, the government figures the couple owes more than $4.8 million in taxes.

And now, with the criminal complaint filed, the Feds are once again asking to keep the Lakes' seized property. This includes the $6 million cash taken from their home but also $9.1 million kept in various bank accounts and that nice house in Colleyville.

Update at 3:20 p.m.: The Lakes' attorney, Lawrence Brown, sent along a statement essentially denying the government's claim.

These charges appear to be based on a number of misunderstandings. Mr. Lake has operated a highly successful and cash-intensive business for many years, and has legitimately deposited, transferred, and held large amounts of cash. Some of these practices may be ill-advised, but they are not criminal. Mr. Lake has consistently paid all his taxes and filed all proper documentation regarding his finances. We look forward to presenting our case to a jury.

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18 comments
Buck99
Buck99

Question: Why does everything need to be politicized? They evaded taxes that everyone else is required to pay; Republican or Democrat or Tea Party or The Great Pumpkin Party.

jacksonp22
jacksonp22

Kathy Loyd Lake, 56, of Colleyville passed away Sunday, Dec. 2, 2012, following a nine-year battle with cancer.

ThePosterFormerlyKnownasPaul
ThePosterFormerlyKnownasPaul topcommenter

Idiots! ... The first thing that the IRS asks for in an audit is the bank statements.  Same thing that the bankruptcy trustee also asks for.

ket354
ket354

Why does Obama hate success!!!!

GuitarPlayer
GuitarPlayer

I just love White Republican crime. So clean and nobody gets hurt. Celebrate Diversity!!!

Montemalone
Montemalone topcommenter

More god fearing republicans at work.

jacksonp22
jacksonp22

@tr24682 Thank you for the link....I had dealings with these folks in the past. I had to take Larry Lake & his company to court. The judge was very interested in my case, I won and I would advise anyone that has had any dealings with these people good or bad, because what they are doing is illegal, I was able to prove what they were doing and they decided to settle then deal with me.

James080
James080

 @Montemalone Did I miss the part where Mr. Lake was identified as a Republican? Or, did you just assume that only a Republican could own "a handful of successful businesses....."

 

 

GuitarPlayer
GuitarPlayer

 @ScottsMerkin Yep. That's reality jack. That's poo folk. The man on top NEVER gets his hands dirty because he has the money to have someone else do it. Lower income workers get dirty, get hurt and sometimes die. Usually when a rich guy croaks it's in his own private plane or WWII P-51 Mustang. So yeah, Democrats usually work, play and commit crimes hard. And Republicans (the rich ones) die in their planes, their boats, climbing Everest or spending 10 years in the Federal Penn, growing a garden and enjoying conjugal visits with wife. They rob you, don't get that confused. It's just you don't see it. They seep it out of ya. 

JFPO
JFPO

@James080 Sleazy title loan business screams "Republican."

thefncrow
thefncrow

 @James080  @Montemalone He's the owner of a business that requires the existence of a sizable impoverished underclass.  If he's not a Republican, he's a fool.

James080
James080

 @RTGolden1  @thefncrow  @Montemalone Very true. There is really scant difference in the two parties, and they use each other as foils to keep the public divided while they pursue their own personal agendas. Personally, I can't defend either republican or democrat politicians, but I know I come off as defending republicans on this blog because I try highlight the unfounded biases of some posters, as here.

RTGolden1
RTGolden1 topcommenter

 @James080  @thefncrow  @Montemalone Meh.  I'm basically a libertarian and vote mostly along that line.  If common sense tells me a democrat or republican candidate are the better choice for a particular seat, I'll vote for them.

My point in highlighting the crucial role this demographic plays for the democratic party's voting statistics was to shine a light on my assertion that there is no difference between the democrats and republicans when it comes to concrete issues like economics and fiscal policy.

James080
James080

 @RTGolden1  @thefncrow  @Montemalone From my perspective, if Montemalone, thefncrow and JFPO have license to label the Title Loan Owner/Pharmacist as a Republican based on stereotypes of income, occupation, residence, fair play says we can safely identify Elizabeth Escalona (child abuser) and Steven Lawayne Nelson (murderer) as typical Democrats. Along with John Wylie Price (charges pending) who is in fact a typical Democrat.

RTGolden1
RTGolden1 topcommenter

 @thefncrow  @James080  @Montemalone Funny.  One could say that a sizable impoverished underclass is also a requirement for the existence of the Democratic Party.

Ironic, isn't it?

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