A husband and wife believed to be running a multi-million dollar drug trafficking ring out of Morgan County in April 2011 were each sentenced this week in federal court for income tax fraud.
Hank Holloway, 58, was sentenced to two years in prison while his wife, Marsha Holloway, 45, was sentenced to a single day in prison, according to a release from Internal Revenue Service Criminal Investigator Public Information Officer Craig Casserly.
The Holloways, of Chesterhill, pleaded guilty Oct. 2 in federal court to a single count of filing a false federal income tax return and each faced up to three years in prison on the charge.
In 2006, 2007 and 2008, the Holloways reported approximately one-tenth of their actual earnings on income tax returns, claiming a three-year income of $42,894 despite actually earning an estimated $443,830 during that time frame.
The earnings are suspected to have come through the sale of marijuana. When a three-year investigation by the Major Crimes Task Force culminated in the Holloways' arrests in April 2011, detectives seized more than 180 pounds of marijuana.
Also seized were dozens upon dozens of luxury items. A camper, a residence, new TVs, pool tables, hot tubs, guns, 10 vehicles, and two jet skis seized from the Holloways were auctioned off in September 2012. Added to the $957,000 in cash seized, $1.3 million worth of assets were divided among investigating agencies.
Last year, Hank pleaded guilty in Morgan County Common Pleas Court to five counts of state income tax fraud and one count of engaging in a pattern of corrupt activity in relation to the drug trafficking operations, which reportedly ran drugs from Arizona to the Holloways' home in Chesterhill. Hank was sentenced to five years in prison on the charges.
Marsha pleaded to the same counts as her husband and was sentenced to five years of community control.
Hank's two-year federal prison sentence will not begin until he has completed his other prison sentence-currently set to expire March 25, 2017.
In addition to incarceration, the Holloways were sentenced to pay $77,068.12 in restitution to the Internal Revenue Service, for which the couple will be jointly liable.