Marion financial planner who didn’t pay taxes for years sentenced to federal prison

CEDAR RAPIDS — A Marion financial planner, who didn’t file income tax returns for eight years after being contacted by authorities seven years earlier for the same thing but never paying those delinquent taxes, was sentenced to three months in federal prison and must pay over $264,000 in restitution.

Matthew Westberry, 43, pleaded guilty July 22 in U.S. District Court to two counts of failure to file a tax return. In a plea agreement, Westberry admitted that he didn’t file taxes from 2006 to 2012. After being contacted by tax authorities in 2013, Westberry filed delinquent returns for those years and a tax return for 2013 but didn’t pay what he owed on taxes for 2008 through 2013.

After filing a tax return in 2013, Westberry stopped filing tax returns, according to the federal prosecutors. He didn’t file a tax return for any year between 2014 and 2021.

During those years, Westberry had a gross income of nearly $1.5 million from his position as a financial planner. He never paid income tax during those years, owing more than $250,000.

According to court documents, because of his failure to pay income taxes for 2008 to 2013, the IRS placed two liens on a piece of property Westberry had agreed to purchase. Westberry never went through with the purchase but didn’t have the liens removed.

When the property owner tried to sell the property to someone else, the owner discovered the IRS liens in Westberry’s name, according to court documents. To remove the liens, Westberry filed false lien releases with the Linn County Recorder’s Office. He prepared the lien releases to look like they came from the IRS.

Westberry was convicted of forgery in state court for filing the false lien releases. Last March, 6th Judicial District Senior Judge Paul Miller granted him a deferred judgment and one year of supervised probation, according to a Linn County District Court document. He also was ordered to pay a civil penalty of $855.

U.S. Magistrate Judge Mark Roberts sentenced Westberry on Wednesday to three months in federal prison, plus three months of home confinement after his prison term.

Westberry also was ordered to pay $264,502 in restitution to the IRS and serve one year of supervised release following his prison term. Westberry did pay about $36,000 toward restitution before his sentencing.

The case was prosecuted by Assistant U.S. Attorney Tony Morfitt and investigated by the Internal Revenue Service and the Treasury Inspector General for Tax Administration.

Trish Mehaffey covers state and federal courts for The Gazette.

Comments: (319) 398-8318; trish.mehaffey@thegazette.com