North Carolina pair guilty of bank, tax fraud related to online business

(Washington, DC – Insurance News and Markets) – Daniel and Renee Balson pleaded guilty on Aug. 2, to bank and tax fraud charges in relation to their ownership and operation of Southern Sales Online (SSO), between 2005-2011. The couple lives in Greensboro, North Carolina.

Daniel Balson, 51, pleaded guilty to one count of filing a false tax return for 2010 and one count of making a false statement on a loan application.  Renee Balson, 53, pleaded guilty to one count of making a false statement on a loan application.

Court documents reveal that Daniel Balson owned and operated Southern Sales Online (SSO), an online retail business selling scrapbooking and art materials, books, inspirational DVDs, pet supplies and tools through eBay and Amazon. THe company earned more than $1 million in gross receipts between 2005 and 2011, but the couple did not report this information on their tax returns.  They failed to report the income on a bank application for a mortgage loan modification application.

Sentencing is set for November 3. The Balsons each face a statutory maximum sentence of 30 years in prison for making a false statement on a loan application.  Daniel Balson also faces a statutory maximum sentence of three years for filing a false tax return.  The Balsons also face substantial monetary penalties and restitution.

Source: U.S. Department of Justice.