UPDATE: Local Businessman Sentenced For Federal Tax Fraud - News and Weather For The Quad Cities -

UPDATE: Local Businessman Sentenced For Federal Tax Fraud

Updated:

UPDATE

Michael Van De Heede was sentenced to 12 months and a day for three counts in his federal tax fraud case. He will get one year supervised release for each count.

He will also have to pay $204,928.66 in restitution for his crimes.

Read the background of the case below.

Original

A local businessman trying to redevelop the former Case plant site has pleaded guilty to federal tax fraud.

Michael Van De Heede was indicted last November on three counts of filing a false tax return.

At the time he plead guilty, but last week, decided to accept a plea deal.

Court documents show Van De Heede was working for a Chicago based video gambling manufacturing company.

MGT lottery technologies.

It was Van De Heede's job to develop contacts in state and Native American tribal governments to sell video poker machines.

The company filed an intent to bid notice with the Iowa lottery in 2009, for the state's lottery terminal contract, but did not follow through and actually submit a bid.

During his time there, Van De Heede filed false income tax returns.

Under reporting his income by more than $382,000.

Allowing him to avoid paying a total of $104,000 in federal income tax between 2006 and 2008.

Along with the guilty plea, Van De Heede agreed to cooperate with an ongoing investigation by sharing what he knows.

He also agreed to pay his missing taxes with interest.

Nearly $125,000.

In exchange the government is offering him a lighter prison sentence, one year and one day.

He could have faced up to nine years in prison.

The court documents do not reveal any details about the ongoing investigation and the U.S. Attorney handling the case would not comment on it.

It doesn't appear MGT lottery technologies still exists. It does not show up as a licensed manufacturer of gaming equipment in either Illinois or Iowa. It does not have a current registration with the Illinois Secretary of State's office and the phone number is disconnected.

Van De Heede will be back in court in January. depending on how helpful his information is deemed to be, the U.S. Attorney could ask for an even shorter sentence. Although the judge will have the final say in what his sentence will be.