Independence, Mo. — A former elected official and attorney, embroiled in long-standing FBI inquiries into local utility contracts, admitted guilt to federal tax evasion charges on Monday. John C. Carnes, 69, who has previously faced imprisonment and legal scrutiny spanning decades, confirmed his evasion of personal income taxes from 2012 through 2018.
Carnes was a significant player in municipal decisions during his tenure on the Independence City Council, particularly in the acquisition of land for a solar farm and the controversial demolition of a city-owned power plant. His legal issues resurfaced after he was indicted by a federal grand jury in 2022 on multiple financial impropriety charges, including one count of tax evasion, one count of obstructing the IRS, and seven counts of failing to pay taxes.
His guilty plea reveals that Carnes used attorney trust accounts, meant to handle client funds related to legal representation, to conceal income amounting to $232,000. This income pertained to his fees from the sale of the Rockwood Golf Course and the demolition dealings of the Missouri City Power Plant. The misuse of such accounts was strategically aimed at preventing the IRS from claiming taxes he owed.
Further digging into his financial maneuvers, authorities uncovered that Carnes withdrew substantial sums of cash from these trust accounts, funneling them into personal and business expenses, including gambling activities across Kansas City-area casinos. Notably, from two separate trust accounts, he extracted $144,000 and $444,000 over contrasting periods marked from 2013 to 2019.
Cumulatively, Carnes’ financial misconduct resulted in a failure to pay over $800,000 in taxes. Currently facing the prospect of up to five years in prison without parole, his sentencing hearing remains pending.
The backdrop to Carnes’ individual legal troubles involves broader investigations concerning utility contracts in Independence. In 2017, under suspicion were two lucrative city agreements made under questionable circumstances, including a $9.75 million demolition contract, which notably exceeded a competing bid by more than double, and a nearly $1 million deal to purchase a golf course for a solar farm project in a venture with Gardner Capital.
Connections suggested in investigations reveal intertwined relationships tying the contract awards to significant political donations. Such donations, both traced back to political action committees related to the contractor and recipients in city council, raise concerns about the influence of money in municipal decision-making processes.
The FBI’s scrutiny spotlighted potential conflicting interests, including those involving then-Independence Mayor Eileen Weir, though she emphatically denied any wrongdoing. The complex web of transactions and associations even extended to real estate dealings concerning the golf course’s expedited resale to the city at a steep markup.
Despite intensive investigations and several grand jury subpoenas aimed at uncovering the intricacies of these dealings in Independence, including council non-public meetings and member reimbursements, no further indictments have been made.
Carnes defended himself earlier by suggesting that his indictment was a retaliatory move by federal officials disenchanted by the results of their broader investigation.
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