Oilman indicted on false returns charges
A federal grand jury in Oklahoma City has indicted oil field services company owner Francis Michael Bostick on four counts of filing false income tax returns, finding he failed to report more than $1.2 million in income over four years.
Each of the four counts carries a maximum penalty of three years in jail and a fine of $250,000.
Bostick’s attorney did not return a phone call from The
Oklahoman on Wednesday. Bostick owned and operated Crescent-based oil field services company Bostick Services Corp. and was a onethird partner in BDB LLC.
According to the grand jury indictment, Bostick’s companies regularly sold tank bottoms — thick, heavy substances that settle at the bottom of a tank containing wastewater — to customer Pioneer Trucking.
“Periodically, Bostick would direct the Pioneer Trucking employee to make the checks for tank bottoms payable to Bostick individually, instead of to Bostick Services Corp. or BDB LLC,” the indictment stated.
When checks were written to Bostick individually, he directed that any payments more than about $9,000 be split into multiple checks, the indictment stated.
Bostick then cashed the checks instead of depositing them into a bank account, according to the court filing.
The indictment covers Bostick’s tax returns for calendar years 2010 through 2014. In each year, Bostick reported that his “other income” was zero, according to the court records.
In 2010, he reported total income of $266,900, but did not report income of more than $250,000 that he received by checks and cashed without depositing into his bank accounts, the indictment stated.
For 2011, Bostick reported income of $253,986 while failing to report more than $350,000 in cashed checks, the indictment stated.
The third count in the indictment is for more than $325,000 the grand jury said was omitted from a 2012 tax form that reported net income of more than $1.5 million.
In 2013, Bostick claimed total income of more than $1.8 million, while failing to report an additional more than $275,000, according to the indictment.
“Bostick knew, however, that the return was false because he received substantially more income during calendar year 2013 than he reported on the return,” the indictment stated.