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Tax Fraud

This archive displays posts tagged as relevant to tax fraud and underpayment. You may also be interested in the following pages:

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May 14, 2021

Dusko Bruer, who owned and operated an agricultural machinery company, was sentenced to two years in prison and ordered to pay $2.8 million in restitution following his conviction on tax evasion charges.  Between 2003 and 2009, Bruer's company did not file or pay either corporate or employment taxes.  Bruer was not paid a salary; instead, he used funds from corporate bank accounts for personal expenses.  Bruer also failed to report foreign bank accounts that he owned and controlled, and to which he transferred millions of dollars between at last 2006 and 2015.   DOJ

May 14, 2021

Swiss insurance company Swiss Life Holding AG and related entities will pay $77 million and enter into a deferred prosecution agreement admitting that they conspired with U.S. taxpayers to  conceal more than $1.452 billion in assets and income in offshore insurance policies and related policy investment accounts.  From 2005 to 2014, Swiss Life maintained approximately 1,608 Private Placement Life Insurance policies known as “insurance wrappers,” with associated policy investment accounts with Swiss Life entities identified as the owner, allowing U.S. taxpayers to hide undeclared assets and income and evade taxes.  Beginning in 2008, Swiss Life specifically marketed such policies to taxpayers withdrawing assets from UBS and other Swiss banks in response to offshore tax enforcement efforts aimed at those bank.  DOJ; USAO SDNY

April 30, 2020

The owner of dog training school Universal K-9, Inc., Bradley Lane Croft, has been sentenced to nearly 10 years in prison for defrauding the Veteran Administration’s GI Bill program of more than $1.5 million in connection with 185 fraudulent claims relating to 132 veterans.  Croft had been found guilty of providing false information on instructor names, certifications, and training to the Texas Veterans Commission, laundering money, and submitting fraudulent income tax returns for 2016 and 2017.  USAO WDTX

Want to Fix the Trillion Dollar Tax Gap? How Whistleblowers Can Help

Posted  04/23/21
Earlier this month, Internal Revenue Service Commissioner Charles P. Rettig testified before the Senate Finance Committee, addressing the 2021 filing season and the “21st Century IRS.”  At the hearing, Committee Chairman Ron Wyden (D-OR) raised the topic of the tax gap, referring to the difference between the total taxes that are legally owed, and the total taxes that are paid by individuals and entities. ...

Watch Now: Eric Havian Joins OffshoreAlert Panel with SEC, CFTC, and IRS Whistleblower Officials on Rewards for Domestic and Foreign Whistleblowers

Posted  04/2/21

For the third year in a row, Constantine Cannon partner Eric Havian participated in OffshoreAlert’s annual conference, vGlobal, speaking on a panel with senior leaders of the whistleblower programs at the SEC, CFTC, and IRS.  The panel, which you can watch below, “Rewarding Domestic & Foreign Whistleblowers: The Growth & Spreading Reach of U.S. Programs,” addressed the international reach of the U.S....

March 11, 2021

Swiss bank Rahn+Bodmer Co. will pay $22 million to resolve allegations that it conspired with U.S. customers to evade their U.S. tax obligations by concealing their ownership and control of up to $550 million in undeclared funds held in R+B accounts.  The bank entered into a deferred prosecution agreement and will cooperate with further investigations, including of U.S. accountholders.  DOJ

March 2, 2021

Hedge fund manager Thomas E. Sandell has paid $105 million to resolve claims first brought by a whistleblower under the New York False Claims Act alleging that Sandell evaded tens of millions in state and local taxes by falsely claiming that $450 million in management and performance fees he recognized in 2017 were not earned for services performed in New York, despite the fact that his fund, Sandell Asset Management Corporation, operated in New York and represented to the SEC that New York City was its principal place of business.  In his effort to evade NY taxes, Sandell moved to London for a period of time, opened an office in Florida, and managed SAMC expenses through a shell company that he also owned and controlled, all while continuing to perform the investment services that generated the fee income in New York.  When Sandell’s accountant informed him that he would have to pay NY state taxes, he terminated them and retained a firm that took his preferred position.  The whistleblower will receive an award of $22.05 million, which is 21% of the government’s recovery. NY

Operation Brace Yourself Nets $20M Settlement with DME Fraudster

Posted  02/9/21
stethoscope and blood pressure
This week, the Department of Justice announced it had reached a $20.3 million settlement with a Florida businesswoman who pleaded guilty to conspiracy to commit healthcare fraud and filing a false tax return.  The settlement resolved allegations that the woman, Kelly Wolfe, participated in a scheme to defraud Medicare by filling sham prescriptions for Durable Medical Equipment (DME) like back, ankle, knee, and wrist...

Top Ten Tax Recoveries of 2020

Posted  02/5/21
us cash with "taxes" sign on top
Tax fraud and tax evasion, unfortunately, continued apace last year.  Yet even in the face of waning tax resources, enforcement authorities chalked up some key wins in 2020. Criminal recoveries tend to dominate the headlines because many of the biggest tax recoveries are not public: the IRS scrupulously protects taxpayer privacy, and no announcements are made for civil tax recoveries.  Thus only those that result...

Corruption Crackdown in British Virgin Islands May Be the Start of Something Big

Posted  01/22/21
By Sarah “Poppy” Alexander
judge striking down his gavel
On January 18, 2021, the British government made a surprise announcement that they were convening an independent commission to investigate corruption, organized crime, and other governance failures in the British Virgin Islands.  BVI is infamous for its shell companies, lax oversight, generous tax policies, and general friendliness to those seeking to evade taxes—legally or otherwise.  It has also become the known...
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