Owner of Cheeks convicted of tax crimes

The owner of  Cheeks Gentlemen's Club in West Carrollton has been convicted on tax charges.

Elbert Hale, of Washington Township, was convicted by a federal jury Tuesday, March 24, 2009 of three counts of filing false corporate income tax returns from 2002 through 2004.

Hale's ex-wife and long time book keeper, Joyce Hale, of Dayton, was also convicted of one count of making false statements to federal investigators.

Federal investigators said they seized a secret set of accounting books from the trunk of Joyce Hale's car while executing search warrants at Cheeks on May 12, 2006. Prior to seizing the records Mrs. Hale denied to federal agents having any knowledge of the existence of such books. This second set of books documented an under-reporting of business income of more than $3.1 million in the three-year period.

Each of the three counts of filing false corporate income tax returns is punishable by three years imprisonment, a $100,000 fine, restitution of unpaid taxes along with interest and penalties to be calculated by the IRS. Making false statements is punishable by up to five years imprisonment.

Chief U.S. District Judge Susan J. Dlott will schedule a sentencing hearing at a later date.