Wednesday, April 16 2014 10:54 PM EDT2014-04-17 02:54:16 GMT
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LOUISVILLE, Ky. (WDRB) -- Police in Indiana have arrested two business partners for failure to file and pay income taxes.
Indiana State Police arrested 36-year-old Ivan J. Deleon and 38-year-old Jeanacarol Kaufman in Floyds Knobs after a criminal investigation determined they failed to file and pay Indiana state income taxes.
Both were arrested without incident at their residence in the 100 block of Skyline Court in Floyds Knobs.
Indiana State Police Detective Tim Denby initiated a criminal investigation after receiving information in August from the Indiana Department of Revenue that Deleon and Kaufman had failed to file Indiana income taxes for a business they operated in Jeffersonville between November 2010 and August 2011.
Deleon and Kaufman operated "My 1501 Studio" and had several female employees that were hired to administer massages. An investigation conducted by Jeffersonville Police in August 2011 revealed prostitution was occurring inside the business. Five women were arrested at the time.
The business was shut down and Deleon and Kaufman were arrested for Promoting Prostitution, a Class C Felony. The arrests today stems from Deleon and Kaufman operating a corrupt business between November 2010 and August 2011 and for failing to pay income taxes.
Deleon and Kaufman now face four felony charges, including corrupt business influence, sales tax evasion, income tax evasion and theft. All are felonies.
They were being held in the Clark County Jail on a $20,000 bond.