Mecklenburg County Business Woman Charged in State Tax Case

March 1, 2016

A Mecklenburg County business owner was arrested Thursday on state tax charges filed by the North Carolina Department of Revenue.

Carolyn M. Shepard, 54, of 1701 Fountain View St., Charlotte was charged on February 18, 2016 with nine counts of Embezzlement of State Property, five counts of Embezzlement of Mecklenburg County Property and four counts of Willful Failure to File North Carolina Individual Income Tax Returns.

Arrest warrants allege that Shepard, owner and managing member of CS Design, did embezzle, misapply and convert to her own use $77,843.92 in North Carolina and Mecklenburg County Sales Tax, and embezzled $5,984.00 in North Carolina Withholding Tax during the period January 1, 2011 through April 30, 2015.  During this period of time, Shepard held the position of managing member and was the responsible person of CS Design, which was under a duty to collect, hold in trust, and remit North Carolina State Taxes to the North Carolina Department of Revenue.  Additional warrants allege that Shepard was required to file North Carolina Individual Income Tax Returns for the tax years 2011, 2012, 2013 and 2014, but willfully failed to file the returns.

Shepard appeared before a Mecklenburg County magistrate and was placed under a $75,000.00 secured bond.   A first appearance is scheduled for March 18, 2016 in Wake County District Court in Raleigh.

The charges against Shepard resulted from an investigation by a special agent with the Department’s Criminal Investigations Section in Hickory.

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