Colbert Man Admits Tax Evasion

Wed., April 22, 1998

From Staff

A Colbert man has pleaded guilty to evading federal income taxes due on a business that makes collectible figurines.

Scott D. Haynes, 44, faces a maximum sentence of five years in prison and a $250,000 fine when he is sentenced June 15 by U.S. District Judge Fremming Nielsen.

According to the plea agreement released Tuesday, Haynes and wife, Kristin, filed a joint income tax return for 1995 showing income of $373,000 and taxes paid of $123,000.

The couple’s income was $1.49 million and they should have paid $565,000 in federal taxes, the agreement said.

Kristin Haynes is the artist who designs figurines and related merchandise sold nationwide under the “Dreamsicles” trademark.

According to the plea agreement, Haynes and his wife received royalty income of $5.5 million from Cast Art Industries from 1993-1996 for a series of sculptures and merchandise.

Scott Haynes told Cast Art to split the royalties between two companies, Dicky Duck Springs, Inc., and Tiburon, Inc.

The couples’ federal tax returns for 1993, 1994 and 1995 omitted the $2.6 million in income paid to Tiburon, Inc., the agreement said.

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