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Former Timberlanes owner faces federal charges

September 28, 2012
By LARRY SHIELDS , Salem News

SALEM - Former Timberlanes Restaurant and Motor Inn owner and general manager Melissa Snively-Pallard faces a seven-count indictment issued by a federal grand jury in Cleveland on Thursday, according to Steven M. Dettelbach, United States Attorney for the Northern District of Ohio.

She is charged with failing to report and pay employment taxes owed by the corporation she previously owned.

If convicted she faces a maximum sentence of five years in prison.

Court records show that Snively-Pallard, 33, currently resides in New Springfield.

The indictment alleges that Snively-Pallard, also known as Melissa Snively and Melissa Pallard, was the owner, president, chief executive officer, and general manager of Timberlanes.

It alleges that for the seven calendar quarters, from the second quarter of 2006 through the end of 2007, she failed to report and pay to the Internal Revenue Service federal income taxes and Federal Insurance Contributions Act (FICA) taxes that Timberlanes withheld from its employees' wages with a combined total of approximately $93,927.

Snively ran the restaurant and motel, a Salem landmark, for several years in the early to mid-2000's before it wound up being purchased in a sheriff's auction this past July.

Federal tax liens of $33,945, $602,809 and $348,346 were released from the property's record for that transaction.

In September of 2006, Snively-Pallard received a $2.13 million loan from Kennedy Funding, a New Jersey-based direct private lender, to renovate the facility and offered it as collateral.

The Kennedy Funding company said it assists hotels and restaurants refinance and consolidate debt.

According the indictment, if she is convicted, her sentence will be determined by the court after review of factors unique to the case, including the defendant's prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation.

The case was assigned to Judge Patricia Gaughan in Cleveland.

An IRS spokesperson said an initial appearance by the defendant is expected soon.

The case is being prosecuted by Assistant United States Attorney John M. Siegel, following an investigation by the Internal Revenue Service, criminal investigation unit in Akron.

Last March, Snively's father, Wade C. Snively of Canton, was charged in the Northern District of Ohio federal court with three counts of filing false income tax returns, two counts of corruptly endeavoring to obstruct and impede the due administration of the tax laws, and three counts of bankruptcy-related offenses.

According to court records, Snively, 58, resides in Canton.

The first three counts allege Snively made and subscribed joint income tax returns for 2005 through 2007 that were false in a number of regards.

False entries claimed losses that Snively and his wife, in fact, had not incurred, including: (1) a purported $193,116 embezzlement loss in 2005; (2) a purported $342,068 involuntary conversion loss relating to State Farm Insurance Company in 2006; and (3) a purported $125,000 long-term capital loss relating to another person's bankruptcy in 2007.

The fourth count alleges Snively corruptly endeavored to obstruct and impede the tax laws while the fifth count, related to the purchase of Timberlanes from Roy Paparodis by Snively, alleges a separate effort to obstruct and impede the tax laws by filing a false document with the IRS to retaliate against a person ("RP") who successfully obtained a $330,475.10 monetary judgment against Snively and a trust controlled by Snively.

The indictment refers to the person retaliated against only as "RP" throughout the filing.

It states that RP brought the lawsuit to recover damages from Snively's and the trust's default on a note payable to RP in connection with RP's sale of a restaurant/inn business (Timberlanes Incorporated) to the trust.

During RP's lawsuit against Snively and the trust, Snively falsely asserted that RP had indemnified him against RP's claim on the note.

After losing the lawsuit in December 2005, Snively prepared a false IRS Form 1099-C, Cancellation of Debt, falsely claiming that RP had $330,475 in debt forgiveness income in 2005.

The indictment said Snively sent a copy of the form to RP in January 2006, advising that he would be delivering it to the IRS.

After RP successfully collected on the judgment in August 2006, Snively submitted the false Form 1099-C to the IRS in September 2006, thereby seeking to subject RP to potential financial and other costs of an unwarranted IRS examination, investigation, tax assessment, or other adverse action with respect to that purported income.

The three bankruptcy-related counts charge Snively with making a false statement in a personal Chapter 7 bankruptcy he filed in 2006, concealing property from his creditors and bankruptcy trustee in that proceeding, and executing a scheme to defraud the creditors and trustee.

The IRS said Snively was originally indicted on March 28, 2012 but in May a superseding indictment was handed down with two additional counts of making false statements,and providing false information that supported fake documents submitted to the IRS.

Among the creditors he allegedly attempted to defraud was the Timberlanes seller, RP.

A principal aspect of the bankruptcy charges was Snively's effort to conceal his interest in and control over a company known as All American Health Care.

The indictments for Snively and his daughter note that in all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

An indictment is only a charge and is not evidence of guilt.

A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.

Larry Shields can be reached at lshields@salemnews.net

 
 

 

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