McMordie Trustee Randy Lynn White Pleads Guilty to Tax Evasion
One person has pleaded guilty to tax evasion.
Randy Lynn White pleaded guilty in Lubbock before U.S. District Judge Sam R. Cummings to an Information charging one count of tax evasion on Friday morning.
According to court records, White has admitted that he did not file required tax returns for 2007, 2008, and 2009 in order to evade the payment of more than $211,000 in taxes.
White was the sole trustee of the Frank F. McMordie, Jr. Family Trust, and has admitted that he derived substantial benefits and income from the trust.
He had control of the Trust’s assets, which consisted primarily of a large ranch in the Texas Panhandle that produced mineral interests.
White reportedly paid himself high administrative fees and spent most of the Trust’s remaining money on personal expenditures such as personal house payments, motorcycles, diamond and gold jewelry, and other vehicles.
According to the U.S. Attorney’s Office, White attempted to conceal the expenditures by paying a “relatively small amount” of the Trust’s income to the beneficiary, Frank F. McMordie III, who resided in Mexico.
White also admitted that he disguised many of the funds diverted from the Trust’s bank account by placing false business notations on the checks. He falsely indicated that the money was being used for ranch operating expenses.
White has agreed to pay the $211,000 tax loss. He faces up to five years in federal prison and a $250,000 fine. He remains on a personal recognizance bond, and a sentencing date has not been set.