Mission Hills businesswoman V. Cheryl Womack indicted in $7 million tax case

Dec. 12--A Kansas City federal grand jury indicted Mission Hills businesswoman V. Cheryl Womack Thursday morning for allegedly attempting to interfere with the administration of federal tax laws and lying to federal investigators.

Womack, 62, formerly was chief executive officer of the National Association of Independent Truckers and now works as a venture capitalist.

In an indictment unsealed just before 10 a.m., grand jurors accused her of failing to report millions of dollars in income, which she placed in Cayman Island businesses, trusts and financial accounts. Investigators estimated the tax loss to the U.S. government at more than $7 million.

The indictment also alleges that Womack lied to FBI agents when they questioned her about foreign business interests and again lied to a U.S. Justice Department attorney about her Cayman Islands interests during a deposition.

Womack's attorney, Nathan F. Garrett, declined to comment Thursday morning, saying he had not seen the charges.

Womack, a University of Kansas graduate, made her initial fortune beginning in the early 1980s, when she founded the National Association of Independent Truckers, which sold liability insurance to independent truck drivers.

She sold that business in 2002 for more than $35 million, the indictment alleged.

Since then she has operated VCW Holding, LLC, a venture capital firm, and has chaired Leading Women Entrepreneurs of the World, which seeks to encourage women in business.

Her business career has not been without its troubles, however.

In 2008, Brandy M. Wheeler pleaded guilty to embezzling at least $1.1 million from VCW's accounts and eventually was sentenced to a year and a day in prison.

Last week, Womack and VCW filed a motion in federal court asking for a hearing to determine whether Wheeler was in compliance with her restitution obligations.

Also in 2008, federal lawyers brought a civil lawsuit against one of Womack's investment advisers, alleging that he helped customers use sham management companies to avoid paying taxes.

Womack acknowledged then in an interview with The Kansas City Star that she had invested in chicken farming at the adviser's suggestion. She also said she didn't understand how the adviser had gotten the nickname "Dr. Poof," purportedly for his ability to make customers' tax liabilities disappear.

"I paid plenty of friggin' taxes," she told the newspaper. "I never got mine 'poofed' away."

In 2010, Womack, a heavy contributor to KU athletics, emerged as a strong voice of reform as details of corruption emerged in the school's sports ticket office.

Womack also occasionally wrote guest columns for The Star's business section.

To reach Mark Morris, call 816-234-4310 or send email to [email protected].

___

(c)2013 The Kansas City Star (Kansas City, Mo.)

Visit The Kansas City Star (Kansas City, Mo.) at www.kansascity.com

Distributed by MCT Information Services