The founder and former chief executive officer of a major McKinney construction company received a probated sentence on federal tax fraud charges.

A federal judge in the U.S. Eastern District of Texas court sentenced Paul Pogue to three years of probation for filing false income tax statements. Pogue will also have to pay $250,000 in fines and a total restitution of $473,000 for the monies he failed to report and complete 1,000 hours of community service, according to court records.

Pogue, the founder and former CEO of Pogue Construction of McKinney that has designed and built several structures for the city of McKinney and McKinney ISD, accepted a plea deal on a federal felony violation of making and subscribing a false tax return back in February. Pogue admitted that he "willfully made and subscribed a U.S. individual income tax return form…for calendar year 2003" that reflected his taxable income by a lesser margin of approximately $1 million, according to court documents.

His 1040 form reflected he earned taxable income of $4,594,052 for his work as a consultant for a construction firm, but investigators discovered he actually earned $5,588,249 in the span of the calendar year.

He then submitted two additional fraudulent tax returns in 2005 and 2006 that also contained significant deductions of actual taxable income. His 2004 return only reflected earnings of $3,111,715 when he actually earned $3,686,784 and his 2005 return only reported $2,908,235 when he knowingly earned $3,030,684, according to an Internal Revenue Service investigation.

Daviln Walston of Beaumont, a spokeswoman for the U.S. Attorney's Office, said her office the judge's sentence stands as a just punishment.

"This is not a light sentence," Walston said. "$473,000 in restitution and a $250,000 fine is pretty significant. This will follow him around for awhile.Ó

Mike McCue, Pogue's attorney, of Dallas said he also agreed with the judge's sentence.

"We believe the sentence is appropriate and we're very pleased," McCue said. "We presented a recommendation of community service for the court's consideration. We believe the implementation of that plan will be a great benefit to the homeless, low income families and persons with disabilities, both within McKinney and the surrounding area."

McCue said Pogue has been very cooperative with prosecutors and investigators connected to his case. He hasÊ paid back his $473,000 in restitution for all the back taxes he failed to report and "resolved all tax issues related to these charges."

Pogue has also taken full responsibility for the charges levied against him, McCue said.

"I know that Mr. Pogue deeply regrets the pain he has caused to himself and his family, his friends and business associates," McCue said. "He appreciates their ongoing support." Ê

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