Bill and Roxanne Blankenship tax problems

Posted in the Phelps Forum

tax problems

Paris, KY

#1 Dec 27, 2009
Couple selling knock-offs in trouble over taxes

By Kevin Wheatley
November 19, 2009

Two retirees who sold more than $1 million in knock-off merchandise and a suspended lawyer who failed to report her income have been indicted by the Franklin County grand jury for tax fraud.

Billy Blankenship, 56, and Roxanne Blankenship, 54, both of Elk City in Pike County, and Margaret Jackson-Rigg, 50, of Flemingsburg, face charges of failing to report earnings to the Kentucky Revenue Cabinet and pay taxes, their indictments say.

The Blankenships, both retirees, made and sold counterfeit designer clothing, purses and fragrances from their Pike County home, Commonwealth’s Attorney Larry Cleveland said.

The couple made more than $1 million during 2007 and 2008 and didn’t report it on their tax returns, Cleveland said.

The Revenue Cabinet’s Division of Special Investigations received a tip and began investigating, Cleveland said. The investigation revealed a number of deposits and checks to the Blankenships for their knock-off merchandise.

“People would write,‘for perfume’ or ‘for purse’ in the memo line of the checks,” Cleveland said.

Jackson-Rigg, a lawyer, failed to report her income on tax returns between 2002 and 2008 – totaling approximately $750,000, Cleveland said.

Cleveland wasn’t sure how the Revenue Cabinet became aware of the matter, but he said she hadn’t paid her Kentucky Bar Association dues.

The bar association has suspended Jackson-Rigg from practice because she hasn’t paid dues, Cleveland said.

She faces one count of willfully filing or making false tax returns or failure to pay taxes – a class D felony – for every year she failed to pay income taxes (seven).

The Blankenships face two counts of the same charge.

Cleveland said the three face charges in Franklin County because the income tax should have been filed and sent here.

“That’s how I get all these tax cases,” he said.“That’s why I’m prosecuting people from Gobblers Knob in Union County because they should have done something in Frankfort.”
sheriff

Stanton, KY

#2 Dec 28, 2009
sounds like there is a lot of money to be made selling fake shit to women whether it is purses, perfume or titties. Fake is in!
rnsinthfmly

Clay City, KY

#3 Dec 28, 2009
what about those blankenships their from camp creek they sold fake stuff alteast they didn't steal the power lines from the power co.. like their kin folk keith!! lol...
Tax collector

Georgetown, KY

#4 Dec 28, 2009
rnsinthfmly wrote:
what about those blankenships their from camp creek they sold fake stuff alteast they didn't steal the power lines from the power co.. like their kin folk keith!! lol...
Come over to the Elkhorn City Topix and read a 330+ post about them.
You are so nosey

Lenore, WV

#5 Dec 28, 2009
tax problems wrote:
Couple selling knock-offs in trouble over taxes
By Kevin Wheatley
November 19, 2009
Two retirees who sold more than $1 million in knock-off merchandise and a suspended lawyer who failed to report her income have been indicted by the Franklin County grand jury for tax fraud.
Billy Blankenship, 56, and Roxanne Blankenship, 54, both of Elk City in Pike County, and Margaret Jackson-Rigg, 50, of Flemingsburg, face charges of failing to report earnings to the Kentucky Revenue Cabinet and pay taxes, their indictments say.
The Blankenships, both retirees, made and sold counterfeit designer clothing, purses and fragrances from their Pike County home, Commonwealth’s Attorney Larry Cleveland said.
The couple made more than $1 million during 2007 and 2008 and didn’t report it on their tax returns, Cleveland said.
The Revenue Cabinet’s Division of Special Investigations received a tip and began investigating, Cleveland said. The investigation revealed a number of deposits and checks to the Blankenships for their knock-off merchandise.
“People would write,‘for perfume’ or ‘for purse’ in the memo line of the checks,” Cleveland said.
Jackson-Rigg, a lawyer, failed to report her income on tax returns between 2002 and 2008 – totaling approximately $750,000, Cleveland said.
Cleveland wasn’t sure how the Revenue Cabinet became aware of the matter, but he said she hadn’t paid her Kentucky Bar Association dues.
The bar association has suspended Jackson-Rigg from practice because she hasn’t paid dues, Cleveland said.
She faces one count of willfully filing or making false tax returns or failure to pay taxes – a class D felony – for every year she failed to pay income taxes (seven).
The Blankenships face two counts of the same charge.
Cleveland said the three face charges in Franklin County because the income tax should have been filed and sent here.
“That’s how I get all these tax cases,” he said.“That’s why I’m prosecuting people from Gobblers Knob in Union County because they should have done something in Frankfort.”
What made this your buisness?
rnsinthfmly

Clay City, KY

#6 Dec 28, 2009
When they lived in camp crk. about 18 years ago she also had a store and sold all kinds of stuff shirts purses etc....... probably didn't claim taxes then either! But she was a great teacher at Phelps High School hate to see this happening to her but Uncle Sam wants his part!! What ever happened to her children?
tax problems

Paris, KY

#7 Dec 28, 2009
You are so nosey wrote:
<quoted text>
What made this your buisness?
I pay taxes and everyone else should. The court system made it my business(correct spelling).
Tax collector

Georgetown, KY

#8 Dec 28, 2009
Council member indicted

By Russ Cassady
Staff Writer

An Elkhorn City Council member and her husband have been indicted in Franklin County for allegedly failing to report more than $1 million in income to the Kentucky Revenue Cabinet.

According to court documents, Roxanne Blankenship, 54, and her husband, Billy Blankenship, 56, were indicted on Nov. 18 on a two-count charge of willfully filing or making a false tax return or failure to pay tax.

The charges are class D felonies, which each carry a maximum sentence of five years in prison.

Franklin County Commonwealth’s Attorney Larry Cleveland said he could not recall how the Kentucky Revenue Cabinet first began investigating the case, but that the investigation revealed that the couple had made a large amount of income, but not reported it.

“It’s a substantial amount,” he said.“They failed to report income for 2007 and 2008, business income. The gross amount of that income appears to be over $1 million for those two years.”

The income he said, came from the couple’s sale of knock-off, or designer imitation, purses, perfumes and clothing.

“There’s checks deposited into their bank accounts, with the memo ‘purse,’‘perfume,’ that sort of thing,” he said.

Blankenship said Tuesday she has not been contacted about the charges and had not seen any documentation regarding them.

Also, she said, she and her husband have filed a tax return for 2007 and are in the process of filing a return for 2008.

“We have paid what’s been due,” she said.

While the charge carries a potential penalty of five years in prison, Cleveland said those found guilty are rarely jailed.

“These are all usually first-time offenders,” he said.“What we’re trying to do is primarily collect the money. It will convict them of felonies, but, instead of jail time, pursuing time in the penitentiary, we’ll be trying to collect the money back.”

However, he acknowledged that the Blankenships’ case may present unique challenges.

“In a case like this, it may be impossible to collect all that money,” Cleveland said.

Cleveland said his office handles all state tax cases because the returns are filed in Franklin County.

Blankenship was appointed to the council in June to replace Casey Horton, who resigned from the council after moving out of the Elkhorn City limits. Prior to this year’s appointment, Blankenship had served three terms on the council.

Blankenship said Tuesday she will allow the mayor to make a decision on her service on the council.

“I’ll do whatever’s best for the city,” she said.

Dec 2nd App News Express
just got to

Paris, KY

#9 Dec 29, 2009
bump it

“Loving Life!”

Since: Aug 09

Kentucky, USA

#10 Dec 29, 2009
I don't think people should criticize Bill & Roxanne and then have burned illegal copies of DVDs, CDs, or other medium in their home. This too is illegal and costs money for those of whom it is stolen from.
you missed the point

Paris, KY

#11 Dec 29, 2009
PikeKY wrote:
I don't think people should criticize Bill & Roxanne and then have burned illegal copies of DVDs, CDs, or other medium in their home. This too is illegal and costs money for those of whom it is stolen from.
People are not so concerned with the selling of the products. They are more concerned witht the following:
Couple selling knock-offs in trouble over taxes

By Kevin Wheatley
November 19, 2009

Two retirees who sold more than $1 million in knock-off merchandise and a suspended lawyer who failed to report her income have been indicted by the Franklin County grand jury for tax fraud.

Billy Blankenship, 56, and Roxanne Blankenship, 54, both of Elk City in Pike County, and Margaret Jackson-Rigg, 50, of Flemingsburg, face charges of failing to report earnings to the Kentucky Revenue Cabinet and pay taxes, their indictments say.

The Blankenships, both retirees, made and sold counterfeit designer clothing, purses and fragrances from their Pike County home, Commonwealth’s Attorney Larry Cleveland said.

The couple made more than $1 million during 2007 and 2008 and didn’t report it on their tax returns, Cleveland said.

The Revenue Cabinet’s Division of Special Investigations received a tip and began investigating, Cleveland said. The investigation revealed a number of deposits and checks to the Blankenships for their knock-off merchandise.

“People would write,‘for perfume’ or ‘for purse’ in the memo line of the checks,” Cleveland said.

Jackson-Rigg, a lawyer, failed to report her income on tax returns between 2002 and 2008 – totaling approximately $750,000, Cleveland said.

Cleveland wasn’t sure how the Revenue Cabinet became aware of the matter, but he said she hadn’t paid her Kentucky Bar Association dues.

The bar association has suspended Jackson-Rigg from practice because she hasn’t paid dues, Cleveland said.

She faces one count of willfully filing or making false tax returns or failure to pay taxes – a class D felony – for every year she failed to pay income taxes (seven).

The Blankenships face two counts of the same charge.

Cleveland said the three face charges in Franklin County because the income tax should have been filed and sent here.

I pay taxes and so should these people.
Taxman

Georgetown, KY

#12 Dec 29, 2009
Elkhorn fire under investigation

By Russ Cassady Staff Writer



Kentucky State Police and the state Fire Marshal’s Office are continuing to investigate the cause of a fire which destroyed much of a commercial building in Elkhorn City on Christmas Eve.

The fire began Thursday morning and burned for several hours at the plaza, owned by Elkhorn City Council member Roxanne Blankenship and her husband, Billy. It was finally extinguished by firefighters from several departments, including Elkhorn City, Ferrells Creek and Marrowbone.


At this point, though, little is known about the cause of the blaze.

“(Parker) is still investigating,” Goble said.

David Broderick, with the State Fire Marshal’s Office, said his office is also investigating, but is required to look into any fire at a commercial building.

In the meantime, one of the building’s owners said Monday he doesn’t yet know the extent of the damage to the building or the cause of the fire.

“I don’t know,” Billy Blankenship said Monday.“They won’t even let us go in it.”



He said everyone is still unsure of the cause.

“Nobody knows,” he said.“We don’t know.”

At this point, Blankenship said, it’s a “wait-and-see” situation

“I hope to be able to rebuild it,” he said.“I hope and pray we can.”

Billy and Roxanne Blankenship were indicted in November in Franklin Circuit Court on a two-count charge of willfully filing or making a false tax return or failure to pay tax for allegedly failing to report more than $1 million in income to the Kentucky Revenue Cabinet.

The income, according to Franklin County Commonwealth’s Attorney Larry Cleveland, came from the couple’s sale of knock-off, or designer imitation, purses, perfumes and clothing.

They are scheduled to be arraigned on Jan. 8.

Roxanne Blankenship, a veteran of the council, was appointed in June to replace Casey Horton, who resigned from the council after moving out of the Elkhorn City limits.

News Express
concerned

Pikeville, KY

#13 Dec 29, 2009
I hope they find out what caused the fire that destroyed their lil shopping center christmas morning. Glad to hear Billy say on WYMT news that the building was insured.
whatever

Macon, GA

#14 Dec 29, 2009
WHO CARES!!!!!

“I speak my opinion”

Since: Dec 09

Paris, KY

#15 Dec 29, 2009
whatever wrote:
WHO CARES!!!!!
He does!
mes

Winchester, KY

#16 Dec 29, 2009
what is rong with the blankenships children that is not rong with everybody elses?
ohhhh

Macon, GA

#17 Dec 29, 2009
What are there kids up 2 now

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Phelps Discussions

Title Updated Last By Comments
Who are the top 10 prettiest girls in 8th grade... 1 hr BMSBABES 2
Male workers at GS 5 hr RealWife 17
Truth about Stopover (May '12) 12 hr Mandy Stiltner 13
The new jailer? Sat Justiceforallnky 27
Prom Queen Fri Nessa Wins 1
Here we go again Apr 23 Meeee 2
What happened at the Grade School Apr 23 noballs 10
More from around the web

Phelps People Search

Addresses and phone numbers for FREE

Personal Finance

Mortgages [ See current mortgage rates ]