North Carolina biz owner faces prison for tax fraud

A Fayetteville businessman who prosecutors said lavishly spent company funds on personal items like a $300,000 swimming pool and $145,000 Rolex watch, faces up to three years in federal prison after pleading guilty Tuesday to willfully filing a false tax return.

Christopher Scott Harrison, 56, defrauded the U.S. government by not reporting $25 million in income he paid himself from his insurance and human resources business, Ebenconcepts, the U.S. Attorney for the Eastern District said.

According to prosecutors, Harrison filed for Chapter 11 bankruptcy after his lavish spending on himself came to light. An accounting firm hired by the bankruptcy trustee found almost $25 million in personal expenditures Harrison reported as business expenses between 2012 and 2018. Harrison filed false tax returns during those years.

, leading to almost $6 million in uncollected federal income taxes.

In addition to a potential prison sentence, Harrison must make restitution to the IRS and pay a potential fine, prosecutors said. He'll be sentenced in the spring.