Gary Councilwoman Marilyn Krusas agreed Monday to plead guilty to tax evasion, federal court records show.
Krusas, who has been a member of the Gary Common Council since 2000, was indicted with that charge in October. Federal prosecutors said Krusas failed to file tax returns since 1991 and had failed to pay taxes on a $232,680 inheritance she received in 2009 and 2010.
In a plea agreement filed Monday, Krusas admitted to tax evasion and said the loss to the United States Treasury was between $80,000 and $200,000.
She agreed to pay the Internal Revenue Service all remaining inheritance funds that she "attempted to hide" within a week of her plea hearing. The money is currently in her attorney's trust account, court records state.
Krusas admitted trying to hide her inheritance by withdrawing large sums of cash from her bank account, obtaining money order and cashier checks, sending money to a relative and paying her mortgage and other creditors.
She did not pay the IRS — even after the agency sent her notices and assessments and even after she had hired an accountant to help her, according to the plea agreement.
Krusas agreed to plead guilty but has not yet formally done so.
If the judge accepts her guilty plea to the felony charge, Krusas will no longer be able to serve on the Gary Common Council. Under Indiana law, she would be automatically stripped of her public office.
Neither Krusas nor her attorney, Scott King, could be reached for comment.