Columbus area man spent over $1M of business partner's money, didn't report income to IRS

Eric Lagatta, The Columbus Dispatch
·1 min read
Carlen L. Pittman Jr., 52, who has lived in Jefferson Township and elsewhere in Columbus area, pleaded guilty in U.S. Southern District Court in Columbus to three counts of filing false income tax returns for three years, not reporting over $1 million he took from his business partner's investments.
Carlen L. Pittman Jr., 52, who has lived in Jefferson Township and elsewhere in Columbus area, pleaded guilty in U.S. Southern District Court in Columbus to three counts of filing false income tax returns for three years, not reporting over $1 million he took from his business partner's investments.

A Columbus area man faces prison time after he admitted in federal court to spending more than $1 million of a business partner's investment funds on personal expenses such as house payments, luxury cars, high-end retail items and gambling without reporting it to the IRS.

Carlen L. Pittman Jr., 52, whom records show has had multiple addresses, including in Jefferson Township, Westerville and Columbus' East and Southeast Sides, pleaded guilty in U.S. District Court in Columbus to three counts of filing false income tax returns for the years 2014, 2015 and 2016 — resulting in a tax loss to the government of $320,849.

Pittman waived his right to have a grand jury consider the case and was instead charged on Dec. 13 in what's known as a bill of information. Filing a false income tax return carries a maximum penalty of 3 years in prison and a fine up to $250,000 at sentencing.

According to court documents, Pittman received more than $3.2 million in business investments between 2014 and 2017 from an individual who he entered into a business partnership with in 2014. Federal prosecutors say that the individual invested large sums during those years into Pittman’s ticket re-sale business, Pittman’s Ticket Sales, LLC, as well as a nightclub Pittman opened called Club Shon’Teiras at Eastland Square.

But instead of investing all of those funds into the businesses, Pittman spent more than $1 million of it on himself or deposited the funds into his personal bank account or other business accounts without claiming it as income.

All told, prosecutors accused Pittman of failing to report $1,082,565 as income to the IRS between 2014 and 2016. Pittman has yet to file a 2017 tax return.

Eric Lagatta is a reporter at the Columbus Dispatch covering public safety, breaking news and social justice issues. Reach him at elagatta@dispatch.com. Follow him on Twitter @EricLagatta

This article originally appeared on The Columbus Dispatch: Columbus area pleads guilty to not reporting over $1M in income to IRS