July 24, 2003 | Read Time: 1 minute
A man who used his family foundation to funnel payments for his children’s private-school tuition has been sentenced to five months in prison for tax evasion by the U.S. District Court for Northern California.
In addition to the five months in prison, Tim Mosley of San Rafael, Calif., has been sentenced to five months of home detention and two years of supervised release by U.S. District Court Judge Martin J. Jenkins.
Mr. Mosley created a family foundation with his wife, Carol, at the National Heritage Foundation in Falls Church, Va.
From 1995 through 1999, Mr. Mosley sent payments to the National Heritage Foundation that were earmarked for the family foundation, and reported the money on his income-tax statement as charitable donations. The family foundation sent the money to San Domenico Convent, in San Anselmo, Calif., which used it to pay the Mosley children’s bills at its school, the San Domenico Primary School.
Separately, Mr. Mosley also claimed false business expenses for his insurance company, Mosley and Associates, according to the court.
Mr. Mosley paid the total amount in dispute for both tax issues, $109,000, on the eve of his sentencing. The government is seeking an additional $165,326.57 in penalties and interest.
The court is scheduled to decide on July 31 whether Mr. Mosley must pay the additional money.
