Case 4:19-cr-00199-RP-HCA Document 27 Filed 08/19/20 Page 1 of 5

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF IOWA
UNITED STATES OF AMERICA,
v.
SCOTT DONALD GRIFFEN,
Defendant.

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Criminal No. 4:19-CR-199
GOVERNMENT’S SENTENCING
MEMORANDUM

COMES NOW the United States of America, by its undersigned counsel,
and provides the following memorandum for the sentencing in this matter.
Introduction
On November 15, 2019, Defendant entered a guilty plea to Count 1 of a United
States Information charging willful failure to account for and pay over employment
taxes, in violation of Title 26, United States Code, Section 7202. (Dkt. 3 (Information);
Dkt. 9 (Plea Agrmt)). On November 15, 2019, the Court accepted the guilty plea. (Dkt.
10.)
Defendant is scheduled to be sentenced by video hearing on Tuesday, August
25, 2020 at 10:00 a.m.
There are no outstanding factual or legal objections to be resolved. The only
remaining issue is the ultimate sentence in this case.
Sentencing Guidelines
The base offense level is 16 due to the amount of tax loss. (PSR ¶ 25.) There
are no applicable upward adjustments. (PSR ¶ 26.) There is a three-level decrease
due to acceptance of responsibility, resulting in a total offense level of 13. (PSR
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¶¶ 32-34.) Defendant has one criminal history point, resulting in a criminal history
category of I. (PSR ¶ 41.) His guideline range of imprisonment is 12 to 18 months.
Appropriate Sentence in this Case
Nature and Circumstances of the Offense
Defendant did not pay his taxes. Defendant owned and operated G Enterprises
Inc., a corporation which included two businesses in Ames, Iowa: Corner Pocket and
DG’s Tap House. (PSR ¶ 11.) From 2012 through 2016, Defendant failed to pay over
to the IRS any of his employment taxes that he had withheld from his employees’
wages. (PSR ¶¶ 12-13.) This was a total of $150,297.52. (PSR ¶¶ 16, 17, 20.)
Defendant tried to shift the blame for his failure to pay taxes to his brothers.
In November 2014, he told revenue agents that his brother was taking care of the
employment taxes, and that his brother had access to the businesses bank accounts.
(PSR ¶ 18.) Defendant now admits this was not true. (PSR ¶¶ 15, 18.) Defendant also
claimed he thought that the payroll taxes were handled through another family
company, which also was not true. (PSR ¶ 19.)
Even after he was interviewed by revenue agents, and put on notice of his
failure to pay employment taxes, he still did not pay them over. He continued for more
than two more years to not pay taxes.
History and Characteristics of the Defendant
Defendant’s failure to pay over taxes goes beyond the last quarter of 2016, even
though that is the last quarter for which he has been charged in this case. Defendant
did not provide the probation office with any copies of his tax returns. (PSR ¶ 89.)
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That is because he has not filed any. In anticipation of sentencing, the IRS queried
its records to determine if Defendant has made any payments to the IRS or filed any
tax returns. There are no personal tax returns on file for Defendant, no payments at
least since 2006, and no business tax returns in more than 20 years.
Defendant recently pled guilty in Story County, Iowa, to failing to pay over
sales taxes to the State of Iowa from January 2016 through August 2018, for a total
of $86,134.85. (GX 1.) He has received a suspended sentence and three years’
probation. (GX 2.) His judgment reflects that he owes the Iowa Department of
Revenue $162,628.55.
Defendant is unlike many defendants in this Court, in that he has led a fairly
privileged life. He has very little criminal history. He has no history of mental illness
or substance abuse. He has some college education. He is unemployed, living off
inheritance, the profits of his business, and his daughter. (PSR ¶¶ 69, 73, 77, 79.) He
did lose his mother at a young age, and reports physical abuse by his father. (PSR
¶¶ 46, 51, 52.)
Sentencing Aims of Punishment
A term of imprisonment is necessary in this case to reflect the seriousness of
the offense, promote respect for the law, provide just punishment for the offense, and
to afford adequate deterrence to criminal conduct.
Defendant has stolen from the federal and state government for years. He has
done so despite being interviewed by revenue agents in November 2014, and despite
state and federal charges. He still has not paid a penny back. This is still theft, every
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bit as much as if he had robbed a bank or taken it from a convenience store. His
employees had every reason to believe he was properly paying those taxes over when
he withheld them from their paychecks, not taking them for his own purposes.
Defendant’s theft just took a more sophisticated manner, assuming perhaps that
there would be no real consequences; at worse, perhaps he would have a judgment
against him. A term of imprisonment appears to be the only consequence left that
may dissuade Defendant and others like him from taking this same lackadaisical
approach to tax laws, laws that everyone is subject to, regardless of their tax bracket
or ownership status.
Conclusion
For the reasons stated herein, the government respectfully recommends the
Court impose a guideline term of imprisonment and restitution in the amount of
$150,297.52
Respectfully submitted,
Marc Krickbaum
United States Attorney
By: /s/ Virginia M. Bruner
Virginia M. Bruner
Assistant United States Attorney
U. S. Courthouse Annex, Suite 286
110 East Court Avenue
Des Moines, Iowa 50309
Tel: (515) 473-9300
Fax: (515) 473-9292
Email: Virginia.Bruner@usdoj.gov
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CERTIFICATE OF SERVICE
I hereby certify that on August 19, 2020, I
electronically filed the foregoing with the
Clerk of Court using the CM ECF system. I hereby
certify that a copy of this document was served
on the parties or attorneys of record by:
U.S. Mail
X

Fax

ECF/Electronic filing

Hand Delivery
Other means (E-mail)

UNITED STATES ATTORNEY
By: /s/ Virginia M. Bruner
Assistant U.S. Attorney

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