By Nita Johnson
LAUREL COUNTY, Ky. —
A London doctor was arrested Tuesday on charges that he misrepresented his earnings to the federal government.
The federal indictment against Werner Grentz, a family practice certified physician with the London office of Kentucky Pain Management Services, was unsealed Wednesday on charges of tax evasion.
The 63-year-old physician, who worked in hospitals and medical offices in London, Manchester and Monticello, Ky., and in Jellico, Tenn., reportedly earned between $169,000 to $356,000 each year from 2005 to 2010 but did not file tax returns during those years.
The indictment states Grentz showed his employers an IRS (Internal Revenue Service) form that falsely claimed Grentz was exempt from having federal income tax withheld from his earnings. These untaxed earnings were then deposited into bank accounts of companies Grentz owned as a means to hide his income, according to the indictment.
The indictment was returned by a federal grand jury in Lexington on April 6 but Grentz was not arrested until Tuesday, May 1.
If found guilty of the charges, Grentz could face a maximum prison sentence of five years.
The investigation into Grentz’s activities was conducted by the Internal Revenue Service, Criminal Investigation Division. Assistant United States Attorney John Patrick Grant and Kenneth C. Vert, Trial Attorney for the U.S. Department of Justice Tax Division are representing the United States in the case.
The indictment was jointly announced by Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Kathryn M. Keneally, Assistant Attorney General for the Tax Division, and Christopher A. Henry, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division.
An indictment by a grand jury is an accusation only and the person is presumed innocent until proven guilty.