Former truck insurance company exec working on plea deal in income tax case

By Greg Grisolano, Land Line staff writer | Monday, June 30, 2014

The former CEO of commercial trucking insurance company has filed a motion in federal court for an extension of time her felony income tax evasion case.

Verna Cheryl Womack, 62, a Kansas City-area business woman with ties to the commercial trucking industry, is facing a 10-count indictment that includes one count of attempting to interfere with administration of internal revenue laws, and nine counts of material false statements to a government agency, according to documents on file in U.S. District Court for the Western District of Missouri.

The indictment was returned on Dec. 12, and the taxes owed are estimated to be more than $7 million.

According to a joint motion filed in U.S. District Court for the Western District of Missouri, Womack and prosecutors are asking for the time extension to resolve the case without a trial.

Womack was formerly the CEO of the National Association of Independent Truckers, which sold liability insurance to independent truckers. She founded the business in the 1980s and cashed out for more than $35 million when she sold the business in 2002. She then started her own venture capital firm, VCW Holding LLC.

The indictment against Womack states that beginning in or about 1996 and continuing to the date of the indictment, she “corruptly endeavored … to obstruct and impede the due administration of the internal revenue laws of the United States.”

Womack opened a series of bank accounts and nominee companies and trusts in the Cayman Islands to conceal a portion of her income from the IRS. The indictment further alleges that Womack established at least 19 accounts at various banks in the Caymans. For the calendar years 2005 through 2008, Womack maintained balances between $40,964 and $173,541 in one of those accounts, but failed to report her financial interests to the IRS.

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