DALLAS – An adult bookstore owner and his business partner have been indicted on federal tax fraud charges.
The indictment, handed up last week and unsealed Monday, accuses Leroy Moore Sr. of four counts of tax evasion. Authorities say he owes nearly $420,000 to the Internal Revenue Service after he understated his taxable income for 1996-99. If convicted, he faces up to 25 years in prison and a $1.25 million fine.
Beverly Kay Van Dusen, who did the bookkeeping at Moore’s stores, was charged with four counts of aiding and assisting in the preparation of a fraudulent tax return. If convicted, she faces up to 12 years in prison and a $1 million fine.
Moore, 64, of Arlington also was indicted on a charge of felon in possession of a firearm, federal prosecutors said. If convicted on that charge, Moore – who has at least two felony drug convictions – faces up to 10 years in prison and a $250,000 fine.
Since 1990, Moore has owned five sexually oriented businesses – in Fort Worth, Kennedale, Wheatland and Austin. Van Dusen operated and managed the bookstores, which contain video arcades, adult magazine and novelty sales and video sales and rentals, authorities said.
U.S. Attorney Richard B. Roper said Moore did not want to apply for licenses to operate the businesses in Tarrant and Travis counties in his own name.
To hide his true income, Van Dusen used her company, B&V Enterprises, to give the appearance that she owned and operated the businesses, and Moore used his company, L&M Management, to give the appearance that he leased the property and was a business consultant, authorities said.