Wednesday, April 06, 2005
Copyright © Las Vegas Review-Journal

Contractor accused of not paying taxes on $114 million in wages

A Las Vegas contractor was indicted on conspiracy and tax evasion charges Tuesday after federal authorities accused him of paying more than $114 million in unreported wages to his employees and the employees of other contractors.

According to court records, Robert David Kahre operates the following businesses: Production Air Conditioning, Production Plumbing, Sherman Tile and Marble, and Wright Painting and Drywall. He also provided payroll services for other businesses.

Kahre is accused of paying employees gold, silver and cash from 1998 through 2003.

"No federal tax withholdings were made from the paychecks, and the wages were not reported to the IRS," according to a statement from the U.S. attorney's office.

Kahre is accused of secretly paying about $19.9 million in cash to his employees and about $94.8 million in cash to employees of other contractors for whom he had agreed to provide payroll services.

He also is accused of trying to evade about $1 million in income taxes for 1992 and 1993. In addition, he is accused of trying to conceal his income from 1996 through 2005 by using "straw buyers" to purchase real estate and by placing the properties in the names of his girlfriend, his mother, his sister and his stepfather.

Kahre and 24 others faces criminal charges. They include his girlfriend, Danille Cline; his mother, Myra Buonomo; his sister, Lori; his brother, John; and numerous employees of his businesses.