The executive director of a Charleston-based festival pleaded guilty Friday to federal income tax fraud.
U.S. Attorney Booth Goodwin says Deborah Starks, 55, of Cross Lanes, embezzled more than $300,000 from MultiFest and then didn’t report it on her income tax return. She also didn’t report another $200,000 in revenue.
MultiFest is the MultiCultural Festival of WV, Inc. that’s held each each summer on the state capitol grounds in Charleston.
Goodwin says Starks stole from a charitable organization.
“Obviously $300,000 is a substantial amount of money to any company, but it’s especially significant to a small business or charity. That’s why my office has focused on investigating and prosecuting cases like these to protect such organizations and to send a clear message that such conduct will not be tolerated in this district,” Goodwin said in a prepared statement.
Starks was the treasurer of MultiFest at the time of the scheme. She admitted in federal court Friday that she did not report embezzled funds on her income tax returns from 2005-2010. She has agreed to repay MultiFest more than $300,000 and more than $128,000 to the IRS.
Starks faces up to three years in prison and a $250,000 fine at her April 2 sentencing.