Local businessman pleads guilty to tax evasion

Oct. 22—A Milledgeville businessman, who once co-owned Capital City nightclub and 119 Chops restaurant, pleaded guilty to tax evasion Wednesday morning in U.S. Federal Court in Statesboro.

Eugene R. "Trey" Britt III, who reportedly has two residences — one on South Wayne Street and the other on Seabrook Road at Lake Sinclair, faces prison time, a hefty fine, and is expected to repay the U.S. government restitution of more than $350,000, The Union-Recorder has learned.

The 52-year-old Britt, who was also the co-owner of bars in south Georgia, reportedly cheated the government out of more than $535,000, according to court documents.

Documents and testimony contend that Britt engaged in a scheme to evade taxes owed to the Internal Revenue Service (IRS) on income made at bars and the restaurant that he and other co-owners shared near college campuses across the state including Georgia College & State University.

During the scheme, Britt and others disguised their ownership in the bars by causing each establishment to be owned on paper by one individual. Britt and the other true owners shared the profits by skimming cash and disbursing it amongst themselves.

Britt controlled the distribution of cash for three of the establishments.

In conjunction with his guilty plea to one count of income tax evasion, Britt also admitted that such skimming of money owed to the IRS went on for approximately 20 years. The money derived from the businesses was never reported to the IRS.

During Wednesday's court appearance before U.S. Federal Chief Judge J. Randall Hall of the U.S. District Court for the Southern District of Georgia, Britt also confessed that he had engaged in a similar cash skimming operation concerning sales of beer at a music festival in 2015.

It was not mentioned where that festival was held.

The hearing for Britt was held at the Prince H. Preston Federal Building in Statesboro.

Britt ensured that his tax return was false because he did not inform his accountant of the cash he received from the bars and the music festival, according to the press release.

"Law abiding Americans dutifully pay their taxes with the expectation that others will similarly follow the law," said U.S. Attorney David H. Estes via press release. "Those who concoct schemes to avoid paying taxes for self-enrichment not only violate the law but place a greater burden on all other taxpayers."

Tax evasion is not a victimless crime, according to James E. Dorsey, special agent in-charge of the IRS Criminal Investigation Division.

"We all pay when others cheat our tax system," Dorsey said. "Tax evasion with this degree is a trickery, dishonesty, and deceit that did not go undetected."

Dorsey said the defendant's plea demonstrated the collective efforts to enforce the law and ensure public trust in the country's tax system.

"This guilty plea is a win for all Americans, who play by the tax system rules," said Keri Farley, special agent in-charge of the Atlanta FBI regional field office. "The FBI will not tolerate anyone defrauding our nation's tax system, and we will continue to work with our partners to hold accountable individuals and businesses who refuse to follow the law."

Britt faces up to five years in prison and up to three years of supervised release, restitution and a fine estimated at $250,000. Britt reportedly has agreed to pay $362,249 in restitution.

During his plea earlier this week, U.S. Federal Judge Hall agreed that Britt could remain free on $30,000 bail, pending his sentencing date, which has not yet been set. Restrictions were placed on his travels.

The investigation, which was jointly launched by FBI agents and agents with the IRS Criminal Investigation Division, led to raids at businesses Britt co-owned in Milledgeville, as well as other establishments in middle and south Georgia.

Britt was a former co-owner of bars and restaurants in Milledgeville, Tifton and Americus.

There were three bars in Valdosta where Trey Britt's younger brother, Will Britt, a former Statesboro City Council member, was mentioned as having business dealings.

The case has been led by U.S. Department of Justice Tax Assistant Chief David Zisserson and Trial Attorney Casey Smith, who is with the U.S. Department of Justice Tax Division, as well as the U.S. Attorney's Office for the Southern District of Georgia.

Will Britt, who lives in Statesboro, meanwhile, also was a target of the joint investigation by the FBI and IRS agents.

The 48-year-old Will Britt pleaded guilty earlier this year to one count of tax evasion and agreed to pay a sizeable amount in restitution.

Will Britt was sentenced to 33 months in federal prison back in August. Will Britt will begin serving his prison sentence on Nov. 7.