Local Businessman Pleads Guilty To Federal Tax Fraud - FOX 18 Quad Cities News and Weather

Local Businessman Pleads Guilty To Federal Tax Fraud

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Michael Van De Heede was indicted on three counts of filing a federal tax return in November. Michael Van De Heede was indicted on three counts of filing a federal tax return in November.

A Silvis businessman who wants to redevelop the former Case plant in East Moline pleads guilty to federal tax fraud charges.

Michael Van De Heede was indicted on three counts of filing a federal tax return in November.

This case revolves around Van De Heede's employment with a Chicago based video gaming manufacturing company, MGT Lottery Technologies.

Court documents say Van De Heede was working for the company between 2006 and 2008.

It was his job to develop contacts in state and tribal governments as well as find new investors.

MGT's business strategy was to sell poker machines to those governments and create a game suitable for state lotteries.

During that time the documents show Van De Heede under reported his income by more than $382,000 on his annual income tax forms, allowing him to avoid paying a total of $104,000 dollars in income tax over the three year period.

As part of his guilty plea, Van De Heede agrees to cooperate with an ongoing investigation and provide details of what he knows.

He will also have to pay his back taxes and interest, a total of nearly $125,000.

The plea agreement means the prosecution will only ask for Van De Heede to serve one year and one day in prison.

It's not clear if MGT Lottery Technologies still exists.

It does not have a current state registration with the Illinois Secretary of State's office.

Van De Heede will be sentenced in January.

A federal judge can change the length of the sentence the prosecution will ask for.

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