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Ex-Gary Council Member Admits Hiding Inheritance

Last updated on Saturday, April 20, 2013

(GARY) - A former Gary city council member admitted under questioning from a federal judge that she hid a $232,000 inheritance to avoid paying taxes on the money.

Marilyn Krusas made the admission Thursday as she pleaded guilty to tax evasion. The 69-year-old initially pleaded not guilty, but reached a plea agreement with the government in late March and resigned her post Wednesday on the Gary city council.

The Post-Tribune reports federal prosecutors alleged Krusas had not filed a federal income tax return since 1991.

Krusas told federal judge Joseph Van Bokkelen under questioning that she had hid her inheritance to avoid paying taxes and penalties.

Assistant U.S. Attorney Gary Bell told the court he would request a trial date unless Krusas admitted she had intended to evade the IRS.

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