Former CEO of Nevada-based energy drink company Xenergy found guilty of tax evasion
April 3, 2012
– The former chief executive of a Nevada company that sold the Xenergy sports energy drink has been convicted of evading federal income taxes.
U.S. District Court Judge James Mahan in Las Vegas found 50-year-old Russell Pike guilty Monday of failing to pay full taxes on 2006 income that included almost $12 million stemming from the sale of stock in his company, Xyence Inc. The company started in 2004.
Defense attorney Kevin Leik says Pike is disappointed and they're considering an appeal.
Internal Revenue Service Agent Sam Holland says Pike owed $1.1 million in taxes.
Pike has four prior felony convictions, including two in Nevada for bank fraud and money laundering.
U.S. Attorney Daniel Bogden says Pike could face up to five years in federal prison at sentencing July 2.
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