MEDIA SPOTLIGHT – A former fastener distributor was sentenced to a year in federal prison for federal income tax evasion.

William K. Jones, 59, former CFO and general manager of Spokane, WA-based Fasteners Inc., earlier pleaded guilty to four counts of tax evasion for not reporting $244,000 in income for the tax years 2012-15, the Spokane Spokesman-Review reported. He also agreed to pay a total of $92,734 in unpaid taxes for the year 2011, even though the statute of limitations prevented federal prosecutors from adding a fifth charge.

Spokesman-Review reporter Thomas Clouse wrote that the government agreed to dismiss a related wire fraud case as part of the plea agreement.

“In the alleged fraud case, Jones reportedly hid statements that would have shown he used a company credit card to pay for personal expenses, including his daughter’s college tuition and landscaping at his residence,” Clouse reported.

Jones also agreed to pay another $310,453 in restitution for the billing irregularities.

Although he faced just more than two years in federal prison for the tax evasion, U.S. District Court Judge Frem Nielsen agreed to sentence him below the standard range because of Jones’ age “and other positive factors.”

“You are a good person and a likable guy,” Nielsen told Jones. “Everyone is required to pay the taxes that are due. The public has to know there are consequences.”

Jones testified that Fasteners Inc. owner Dennis Hanson reneged on a handshake agreement to give him 10% sale price of the distributorship. Hanson sold Fasteners Inc. to Fastenal Co. of Minnesota for $24 million in 2015, according to court testimony.

Jones said he was expecting that promised money when he made the fraudulent book entries.

“I intended to settle all the loss I caused,” Jones said. “I will use every future resource I can muster to pay all the obligations. Whatever happens, I own this. I can blame no one but me,” the Spokesman-Review quoted Jones.

Assistant U.S. Attorney George Jacobs asked the judge to consider in sentencing how Jones used his expertise as an accountant to hide his financial tracks. “He didn’t do it once. He did it multiple times. Mr. Jones pays his (daughter’s) college tuition … like it was a corporate expense. He fabricated invoices,” Jacobs said. “So your honor, deterrence would ring hollow if the court did not impose a period of prison in this case.”

The courtroom was filled with Jones’ friends and family. His wife of 36 years, Deanna Jones, spoke on his behalf.

“I could have filled this courtroom with everyone who loves him,” she told the judge. “I know his heart. He is a really loved person. We need this person in our lives. For 55 years, he was a pillar of this community.”

“This is a serious matter. The money … was improperly gained. That was a breach of trust,” Nielsen said.

Editor’s Note: Articles in Media Spotlight are excerpts from publications or broadcasts that show the industry what the public is reading or hearing about fasteners and the fastener industry.