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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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September 5, 2019

The owner of two defense contracting firms, Tico Manufacturing Inc. (TICO) and Military and Commercial Spares Inc. (MCS), has been sentenced to 3 years in prison and ordered to pay $8 million in restitution for conspiring to defraud the Department of Defense.  Between 2011 and 2015, Roger Sobrado fraudulently obtained DoD contracts by claiming that conforming parts for critical military equipment, including fighter jets and helicopters, would be supplied through authorized manufacturers.  Instead, Sobrado supplied non-conforming parts through non-authorized manufacturers, recruited family members to commit the same fraud, and collected DoD payments from his family members.  Additionally, he failed to report almost half of his taxable income for three years, causing the United States to lose a total of $509,962.  USAO NJ

August 29, 2019

Following a guilty plea, Treyton Lee Thomas was sentenced to over 21 years in prison and ordered to pay $14.6 million in restitution and forfeiture to the U.S. and victims of his investment fraud ponzi scheme.  Thomas's victims included his own father, his father's company, his wife, and his father-in-law. Thomas also pleaded guilty to income tax evasion, having failed to file returns for two decades, while using sham offshore entities to conceal his income.  USAO EDNC

Promising Changes to IRS Whistleblower Program – Tax Whistleblowers Now Protected Against Retaliation and Improved Communication when Reporting Tax Violations

Posted  08/21/19
By Michael Ronickher, Carolina Gonzalez
man with red smoke
Recent legislation marks a potential huge step forward for the IRS Whistleblower Program, which offers rewards of 15 to 30% of government recoveries to whistleblowers who report tax avoidance.  The Taxpayer First Act (TFA), which came into force on July 1, 2019 introduced key reforms that should benefit whistleblowers reporting tax evasion and underreporting. A few months ago, the IRS Whistleblower Office released...

August 12, 2019

The CEO of a Colorado-based technology company has been sentenced to over 6 years in prison for defrauding the IRS, impeding the administration of tax laws, and stealing money from his employees’ healthcare and 401(K) plans.  As the head of Touchbase USA (TBUSA) and its successor company Touchbase Global Services, Inc. (TBGSI), Riordan Maynard allegedly stole over $50,000 from his employees’ healthcare plan and $68,000 from their 401(K) plans for use on company expenses.  He also caused TBUSA to be closed and TBGSI to be opened in order to avoid paying more than $2.5 million in unpaid payroll taxes.  After running up another $2.5 million in unpaid payroll taxes, Maynard also conspired to work around IRS levies sent to his customers.  USAO CO

July 19, 2019

For not disclosing additional U.S. accounts when a 2015 non-prosecution agreement was signed with the DOJ, Banque Bonhôte & Cie SA, Ltd. (Bonhôte) of Switzerland has signed an addendum, agreeing to pay an additional $1.2 million penalty on top of its $624,000 share of an earlier penalty against 80 Swiss banks totaling $1.36 billion.  The DOJ had executed non-prosecution agreements with the banks in 2015 and 2016 to resolve potential criminal liabilities relating to offshore banking services.  DOJ

June 18, 2019

A New Hampshire man named Imtiaz Shaikh has been sentenced to 1.5 years in prison and ordered to pay $2.8 million to the State of New Hampshire for evading taxes on the sale of certain tobacco products.  According to state law, wholesale distributors of other tobacco products (OTP) must be licensed, file reports on the number of OTP sold, and pay taxes at 65% of the wholesale price.  To avoid paying taxes on his products, Shaikh conducted business through a number of shell corporations, robbing the state of $2.8 million in unpaid taxes.  USAO NH

May 24, 2019

The co-defendant of a mental health clinic owner who was previously sentenced to prison for submitting false claims to Medicaid and evading taxes has been sentenced to over 6 years in prison on similar charges.  Haydn Patrick Thomas, who worked as an office manager for an oral surgeon, had been convicted of providing Catinia Farrington with the names and Medicaid identification numbers of his office’s dental patients.  He then failed to pay taxes on over $1.4 million that he earned from Farrington’s clinic, with the resulting tax loss amounting to approximately $518,000.  DOJ

May 8, 2019

Tea Kaganovich and Ramazi Mitaishvili, co-owners of New York Diagnostic Testing Centers, each pleaded guilty to health care fraud and conspiracy to defraud the lawful functions of the Internal Revenue Service (IRS). The couple submitted false health care claims for diagnostic testing services and paid over $18 million in kickbacks for the referral of beneficiaries who signed up for diagnostic testing and other alleged medical services. They fraudulently reported to the IRS that the illegal kickback payments were valid business expenses, thus causing relevant tax forms to under-report business income and claim deductions. DOJ

May 8, 2019

Cosmetics retailer Sephora USA Inc. paid $159,349 to the State of Indiana to resolve claims brought by a whistleblower under the Indiana False Claims Act alleging that Sephora made false statements in connection with failing to collect sales tax on internet sales shipped to Indiana consumers.  IN AG

May 7, 2019

The owners of a Colorado biomass power plant agreed to pay $2.6 million to settle allegations concerning fraud impacting the U.S. Treasury’s “1603 Program,” which reimburses companies up to 30%, in lieu of tax credits, for placing renewable energy properties into service. The company at the center of the fraud, Eagle Valley Clean Energy, allegedly applied for and received a 30% advance on a fee it was to pay co-defendant Evergreen Clean Energy, LLC for unspecified development services. Eagle Valley wrote off the fee but failed to return the advance to the U.S. Treasury. As part of the settlement, Eagle Valley paid $2.4 million, and the two owners of Eagle Valley, Evergreen, and parent company Evergreen Clean Energy CorporationDean Rostrom and Kendric Wait—paid $125,000 each. USAO CO
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