ROANOKE, Va. (WDBJ7) -- A North Carolina woman who participated in a fraudulent cosmetics sales scheme was sentenced on federal tax charges on Tuesday, United States Attorney Rick A. Mountcastle announced.
According to a release from the U.S. Attorney's Office of the Western District of Virginia, Charon Ray, a.k.a. "Charon Crowely", 47, of High Point, N.C., was sentenced to three years' probation, nine months of which must be spent on home confinement.
Ray was also ordered to pay a fine of $40,000, according to the release. She also previously pleaded guilty to one count of filing a false tax return.
According to the release, evidence showed that Ray operated an online cosmetic sales business out of her residence from 2009 through 2014.
Ray obtained cosmetics from a disposal company and then repurposed them for sale through electronic sales channels such as eBay, the release states.
According to the release, the IRS examined Ray's financial records for the relevant time period and recognized a known tax loss of $455,109 that she caused by not reporting an income of $1,625,389 due to selling used and returned cosmetic products.
As part of a plea agreement in this case, in 2017, Ray filed amended tax returns for the tax years of 2009 through 2014. Included in the returns were payment of taxes and other amounts due, resulting in a total payment of $590,019, according to the release.