State representative in federal tax fraud case will not see jail time, judge rules

JACKSON, Miss. (WLBT) - A Mississippi state representative has been given two years of probation in connection with making false statements on an income tax return.

On Monday, U.S. District Court Judge Carlton Reeves sentenced Rep. Earle Banks to two years of probation in connection with the case.

In May, Banks pleaded guilty to one count of willfully making a false statement on a federal tax return.

Federal investigators determined Banks had sold land worth more than half a million dollars but never claimed that as capital gains on his tax return, meaning he never paid taxes on that money.

During Monday’s two-hour hearing, the state wanted a harsher punishment against Banks, claiming that he had hidden income from the government before.

At issue were uncharged offenses the feds discovered, that Banks had actually underreported income he made from a business he owned, Autumn Woods Memorial Gardens.

Had that been considered as part of the sentencing guidelines, it likely would have required Banks to serve prison time.

“The judge made particular note the fact that Earle, in his career as a legislator and in his public life, and his life as a private citizen, has always looked out for the poor people in the working people. And Mississippi is always trying to help people who are in need. He has done things like help people get housing, help pay for their insurance, help people in disasters, help people who didn’t have electricity and utilities,” Banks’ attorney Rob McDuff said. “And all of that figured in the judge’s decision to give him probation.”

Banks spoke briefly to reporters after the proceeding, pausing when one asked if he intended to stay in office as representative for District 67.

“Am I gonna stay in office? At this time, I do plan to stay in office. I will be talking to my colleagues who have encouraged me to stay in office. I’ve talked to my constituents who have also encouraged me to stay in office,” Banks said. “I regret that I have found myself in this situation. I regret and apologize to the citizens of Mississippi, my family, my friends, and especially the people in District 67.”

Banks can still remain in office despite this conviction.

Mississippi’s Constitution says tax law violations do not disqualify someone unless the person abused their elected office.

Federal prosecutors say there’s no evidence Banks did that.

As part of Banks’ sentence, he will be required to pay more than $84,000 in restitution and more than $30,000 to the IRS for failing to report that income.

McDuff said during the hearing that Banks had already paid more than $100,000 to the court.

Want more WLBT news in your inbox? Click here to subscribe to our newsletter.

See a spelling or grammar error in our story? Please click here to report it and include the headline of the story in your email.

Copyright 2023 WLBT. All rights reserved.