'Psychic' failed to see taxman coming for share of $3.5M

Boston -- A psychic from Florida, who used four different names, pleaded guilty Thursday to hiding more than $3.5 million of income from an elderly customer in Massachusetts.

Sally Ann Johnson, 41, operated several businesses that purported to offer mystical services, such as psychic readings and spiritual cleansing, the Department of Justice said.

Johnson also used the names Angela Johnson, Angelia Johnson and Sally Reed, the DOJ said. Her businesses were named Flatiron Psychic, Psychic Match Inc. and Psychic Spiritual Salon Inc.

The DOJ said that between 2007 and 2014, Johnson collected over $3.5 million from an elderly woman living on Martha’s Vineyard. The customer paid Johnson to perform spiritual cleansing and healing services to rid her of demons through repeated exorcisms.

“Rather than reporting her income to the IRS and paying taxes on it, Johnson took steps to conceal it,” the DOJ said.

Johnson directed the customer to send payments to at least three different bank accounts, including one that was in another person’s name, the DOJ said. She then withdrew large portions of the payments in cash.

Johnson also concealed income by making charges on a credit card paid by the victim, the DOJ said.

On Thursday, Johnson pleaded guilty to attempting to interfere with the administration of the Internal Revenue laws. As a part of her plea agreement, she will repay $3,567,300 to the Martha’s Vineyard woman and to pay restitution to the IRS for the taxes she avoided from 2007 to 2014.

A sentencing hearing in the plea deal is scheduled for Jan. 17.

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