Colorado Man – William C. Crabbe – Convicted of Tax Fraud!

WILLIAM C. CRABBE, age 58, of Kersey, Colorado, was found guilty Friday, March 7, 2008, of Failure to Pay Employee Federal Payroll Taxes, and of Filing False Tax Returns. Unlike his co-defendant, JAMES S. ROWAN, had earlier pled guilty of similar charges.


According to the US Attorney’s news release, CRABBE was co-owner and principal officer of Columbine Health Care Systems, a now defunct national nurse-staffing agency which operated in 35 states throughout the United States. Columbine would charge its clients a fee for placing nurses in such places as hospitals, healthcare facilities, and doctor’s offices. Columbine would then pay wages to the nurses. The company’s corporate offices were located in Greeley, Colorado, with a few small sales offices located in other states.

According to an article in the Denver Business Journal, CRABBE was quick to roll his ex-partner stating, “I was unfortunately too trusting,” William Crabbe testified on March 4. “I could not imagine that someone would simply decide not to pay taxes.”

The original indictment charging both CRABBE and ROWAN with tax fraud states the following:

The defendants were required to withhold federal income tax, Social Security taxes, and Medicare taxes from their employees’ pay checks. The indictment alleges that from June 30, 2000 through December 31, 2001, the defendants deducted and collected these taxes from their employees, but only paid these taxes for their corporate employees, and not for their nurses. From March 31, 2002 through December 31, 2002, the defendants allegedly collected these taxes but did not pay them to the federal government for either their corporate employees or their nurses. In total, CRABBE failed to pay $4,244,433 in taxes. ROWAN failed to pay a total of $4,236,531 in taxes.

In addition, the indictment alleges that both defendants evaded the IRS in 2001 by concealing their income of approximately $200,000 by using a shell company, Global Management LLC, thus avoiding paying the IRS over $70,000 in taxes owed. CRABBE is also charged with filing false income tax returns for quarters ending March 31, 1999 through December 31, 2001.

While the indictment came in 2006 the jury verdict finding WILLIAM C. CRABBE guilty was reached on March 7, 2008. “Thanks goes to the hard work of the agents who investigated this complex crime and the prosecutors who obtained the guilty verdicts,” U.S. Attorney Eid said. “Our mission at the IRS is to apply the tax law with integrity and fairness to all,” said Terry L. Stuart, Special Agent in Charge of the Denver Field Office. “That means that all taxpayers should pay their fair share,” Stuart said.

Every choice has a consequence! Seems that lately there have been a rash of tax fraud convictions, but then again, it is tax season…perhaps they are timed that way for a reason. One sure way to gain significant tax compliance is to show what can happen when you don’t follow the rules.

Today, speak to groups nationwide about Choices and Consequences. Do your employees make the best choices for your company—or for themselves? Are you ready for some straight talk about success, choices, and ethics from a business executive who lost it all…and gained more than he could ever imagine?

In an unusually vulnerable style, Chuck Gallagher explores the decisions we make through the veil of honesty, integrity, and ethics. Your audience will be touched by his personal stories and poignant lessons.

For information about my presentations, visit my website –

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