(HOUSTON) - The operator of a prostitution business has been sentenced to prison for tax evasion, acting United States Attorney Tim Johnson announced Friday.
United States District Court Judge Melinda Harmon sentenced Randall Bradley Jones to 33 months in federal prison without parole to be followed by a three-year-term of supervised release.
He was also ordered him to pay restitution to the IRS in the amount of $15,000. Jones was convicted of the federal offense after pleading guilty earlier this year.
According to the plea agreement filed in the record of the case, Jones operated a prostitution business in Houston through his corporation called Amazing Promotions Group Inc.
The prostitutes performed services at each of six studios in the Houston area called Escape Lounge.
The prostitutes at the Escape Lounge studios received cash from their customers and gave a portion of the cash to the house.
The money was placed in envelopes which were then left in a safe located on the premises of each Escape Lounge. Amazing Promotions Group Inc. received the cash in the envelopes from each Escape Lounge and created records, including spreadsheets, of the cash income received from each Escape Lounge.
Jones pleaded guilty to evading taxes on his 2003 individual income tax year on Jan. 30, 2009. He admitted he failed to report the money he received from Amazing Promotions Group Inc. in 2003.
Jones also admitted that while his 2003 income tax return reflected taxable income of only $140,444, his true taxable income for 2003 was approximately $667,000.
The court has permitted Jones to remain on bond pending the designation in the near future of a Bureau of Prisons facility and an order of the court for him to surrender to that facility to serve his sentence.