Bail Bondsman To Be Sentenced For Tax Evasion

A Dorchester County bail bondsman is awaiting sentencing on a tax evasion charge, authorities said Friday.

Ernest Monroe Smith, 38, of Ridgeville, pleaded guilty late Thursday to one count of willfully making and filing a false U.S. individual income tax return, said acting U.S. Attorney Kevin F. McDonald.

Smith operates Ernest Smith Bail Bonds in the St. George area, McDonald said.

In the years 2005 and 2006, Smith received most of his bond fees in cash and deposited those fees in increments over time into his business bank account, which gave the appearance that his taxable income was less than the actual amount, McDonald said.

Smith admitted in court that he only reported gross receipts of $182,345 from his bail bonding business on his 2006 tax return, when in fact he had at least $463,318 in gross receipts that year, McDonald said.

Smith also understated his bail bonding gross receipts on his 2005 U.S. individual income tax return, McDonald said.

As part of a plea agreement, Smith stipulated he had underpaid his taxes by $95,629 in 2006, and by $53,876 in 2005, McDonald said.

The maximum penalty Smith could receive is a fine of $250,000, imprisonment of three years, supervised release of one year, and the costs of prosecution. Smith also has to pay the back taxes, McDonald said.

Senior U.S. District Judge Sol Blatt Jr. will sentence Smith at a later date, McDonald said. The case was investigated by agents of the IRS Criminal Investigation Division. Assistant U.S. Attorney Dean H. Secor of the Charleston office prosecuted the case.