A slot machine mechanic from Reno pleaded guilty to tax evasion last week including evasion of taxes on money he embezzled from his employer,United Coin Machine Co.
Paul J.Arny of Reno pleaded guilty before U.S.
District Court Judge Edward C.
Reed to one count of evasion of income tax.He's free on bond until his sentencing, which is scheduled for August 22.
He faces the potential of up to five years in prison and a $250,000 fine.
Federal prosecutors and Internal Revenue Service investigators said that Arny evaded more than $40,000 in federal income taxes for 1999, 2000 and 2001.
They said he was working at the time as a slot mechanic for United Coin Machine, but also was working part-time as a slot mechanic for another company and earned money remodeling homes.
Prosecutors said Arny didn't report that income.
He also didn't report, prosecutors alleged, the money he stole from United Coin Machine while he was working as a mechanic who also had the responsibility to fill the tills of employees at United Coin locations.
Arny rigged slot machines to pay accumulated credits, and then used the help of others to remove paper currency from slot machine bill validators and take coins from slot hoppers and fill bags.
Prosecutors said Arny failed to report $159,218 in income, and they said the government's tax loss was $44,144.
