Richard Joseph Salon owners to be sentenced Sept. 2 in fraud con - WSFA.com Montgomery Alabama news.

Richard Joseph Salon owners to be sentenced Sept. 2 in fraud conspiracy

L-R: Timothy Brown and Richard Joseph Smith. Source: Anonymous to WBRC L-R: Timothy Brown and Richard Joseph Smith. Source: Anonymous to WBRC
BIRMINGHAM, AL (WBRC) -

FOX6 News has learned new details of the extravagant lifestyle kept by two Birmingham salon owners at the expense of their business.

Richard Joseph Smith and Timothy Brown, owners of Richard Joseph Salon, pleaded guilty in May in a fraud conspiracy.

Prosecutors say the pair withheld employee taxes and kept the money to finance their luxurious lifestyle.

Expensive cars, antique furniture and art, Rolex watches and a Steinway piano are just a few of the luxuries federal prosecutors say Smith and Brown paid for by defrauding the United States for a decade.

In 2005, Smith and Brown purchased a home in Hoover's Preserve for $891,000.

Several years later they added a swimming pool and outdoor fireplace for $80,000.

Prosecutors also say the pair employed four full time workers at the home for housework, lawn maintenance and to take care of their 12 dogs.

Over the years, the luxury vehicles purchased include three BMW's and two Mini Coopers for more than $292,000.

During this raid last December, investigators say there were seven vehicles at the home.

Prosecutors also say over 100 salon employees were duped in the fraud and now face uncertain futures regarding Social Security and Medicare benefits.

Federal prosecutors recommended 46 months, or just under four years, in prison for both men. They will be sentenced on Tuesday, September 2.

They have also agreed to pay $1.4 million in restitution.

Copyright 2014 WBRC. All rights reserved.

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