KANSAS CITY, Mo. -- An Independence woman has been indicted in a $1.2 million dollar tax fraud case. Peggy Hennon, 55, faces four courts of federal tax evasion for under reporting her income from 2007 to 2009. Federal prosecutors say she sold cars to scrap metal dealers but failed to report how made she made.
Hennon operates "Peggy's Tow" from her home in Independence. Federal prosecutors say she sold cars to scrap metal dealers but failed to report how made she made.
Hennon walked out of Federal Court on Wednesday, with a coat over her head, hoping to shield her face from a FOX 4 cameraman. She faces up to three years in prison for each of the four counts.
Fox 4 has previously reported about a change to Missouri law last year involving scrap metal yards that's opened up a huge headache for law enforcement.
Under the law passed in 2012, anyone can sell a car that's 10 years or older to scrap metal yards with practically no proof of ownership.
The car may actually be stolen, or it might not be law enforcement sources tell FOX 4 it's impossible to know what's legitimate.
Now Missouri lawmakers are proposing a new change that would mandate cars be at least 20-years old before people can sell them for scrap with hardly any paperwork to prove the deal is legitimate.