Las Vegas Sun

July 29, 2014

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Businessman Robert Kahre sentenced in tax fraud scheme

Robert Kahre, owner of six construction-related businesses in Las Vegas, was sentenced to more than 15 years in prison today.

Kahre paid employees more than $100 million in cash wages as part of an elaborate scheme to defraud the IRS, said U.S. Attorney Daniel G. Bogden of Nevada.

His sister, Lori Kahre, was sentenced to six years in prison for her role in the conspiracy. Two others, including Kahre's girlfriend and his business consultant, are expected to be sentenced Wednesday, Bogden said.

After more than three hours in a sentencing hearing, visiting U.S. District Judge David A. Ezra of the District of Hawaii sentenced Robert Kahre to serve 15 years and 10 months in federal prison, followed by three years of supervised release.

Kahre was also ordered to pay more than $16 million to the IRS.

The judge ordered Kahre, who has been free on a personal recognizance bond since his arrest in 2005, be taken into custody by U.S. Marshals.

In August 2009, after a three-month trial, Robert and Lori Kahre were found guilty of conspiracy to defraud the federal government to impede the IRS in its collection of income and employment taxes.

Robert Kahre was also convicted at the time of 49 counts of failure to collect or pay employment taxes, two counts of attempting to interfere with administering IRS laws, four counts of tax evasion and one count of wire fraud.

His sister was convicted to two counts of attempting to interfere with administering IRS laws, one count of making a false statement to a bank and seven counts of tax evasion.

Alexander C. Loglia, who served as Robert Kahre's business consultant, was convicted of filing a false income tax return and tax evasion.

Danille Cline, Robert Kahre's girlfriend, was convicted of attempts to interfere with administering IRS laws and wire fraud.

Between 1997 and 2003, Kahre owned and operated six construction businesses, including Wright Painting and Drywall, Production Plumbing, Production Air Conditioning, Production Electric, Union Pacific Construction and Sherman Tile and Marble. Through hundreds of employees at the businesses, Kahre and his sister used a payroll scheme to avoid paying taxes.

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