Marysville man pays restitution, still gets jail

Published 10:47 pm Thursday, April 23, 2009

EVERETT — The former operator of a Marysville septic tank company won’t escape jail time even though he paid back the sales tax he stole from the government.

Jeffrey S. Rice, 45, pleaded guilty to one count of first-degree theft and 10 counts of filing false or fraudulent tax returns. He was accused of failing to report at least $4,230 in sales taxes he collected from customers during 2006 and reporting only a third of his company’s gross income subject to business and occupation tax.

The state Attorney General’s Office agreed to drop all but the theft charge and not recommend any jail time for Rice if he paid back the money he owed. By Thursday Rice, who owned American Septic Service Inc., had paid back more than $9,000.

Snohomish County Superior Court Judge Michael Downes sentenced him to a month in jail anyway.

Downes said he recognized that Rice had met his financial obligations, but he couldn’t ignore that most people who are convicted of first-degree theft serve some jail time.

There has to be “some semblance of treating people the same,” Downes said.

He agreed to allow Rice to serve on work release.

Diana Hefley: 425-339-3463, hefley@heraldnet.com.