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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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July 22, 2020

Tony Garrett Taylor has been sentenced to 8 years in prison and ordered to pay over $6 million to the North Carolina Medicaid program and over $1 million to the IRS after pleading guilty to committing healthcare fraud and tax evasion.  Along with his brother, Jerry Lewis Taylor, the defendant conspired to use outpatient behavioral health services companies owned and operated by the brothers to submit false claims to Medicaid for services that were either never provided or misrepresented.  Jerry Lewis Taylor has also pleaded guilty and is currently awaiting sentencing.  AG NC

April 30, 2020

Israel-based Bank Hapoalim, together with its Swiss and other subsidiaries, will pay nearly $875 million and plead guilty to charges that it conspired with U.S. taxpayers and others to conceal $7.6 billion in thousands of Swiss and Israeli bank accounts from the Internal Revenue Service and other U.S. government entities, including New York State.  As part of its plea, the bank admitted that it assisted U.S. customers in setting up secret accounts, sheltering assets and income, and evading taxes.  The total payment by bank entities consists of $216.8 million in restitution to the IRS, $160.3 million in forfeiture, federal penalties of $239.8 million, $37.4 million in civil monetary penalties to the Federal Reserve System, and $220 million in penalties to the New York State Department of Financial Services.   As part of a deferred prosecution agreement, the bank will cooperate with ongoing investigations and disclose information regarding U.S.-related accounts. The bank simultaneously entered into a separate settlement agreement regarding money laundering with respect to the FIFA bribery investigation. DOJ; USAO SDNY; NY.

March 11, 2020

The owner and operator of multiple parcel delivery businesses in Florida has been sentenced to 2 years in prison and ordered to pay $9 million in restitution for withholding over $10.8 million in payroll taxes.  Despite his business earning over $100 million in revenue, and despite withholding taxes from hundreds of employees, Ricardo Betancourt failed to actually pay it to the IRS and instead used those funds to finance personal expenses and other business ventures.  DOJ

March 2, 2020

A man in Colorado who was part of a tax fraud scheme involving renewable fuel credits has been sentenced to nearly 7 years in prison and ordered to pay $7.2 million in restitution.  Along with co-conspirators, Matthew Taylor created a fake company, Shintan Inc., that they then used to seek out and obtain over $7.2 million in tax credits for renewable fuel that Shintan never actually produced.  The fraud ran from 2010 to 2013 and personally netted Taylor about $4.5 million.  DOJ

February 11, 2020

Property developer Monique Brady of Rhode Island has been sentenced to 8 years in prison and ordered to pay $4.8 million in restitution for defrauding 23 investors of $10.3 million in a Ponzi scheme that ran from 2014 to 2018.  Brady told investors, many of them her own family, friends, and business associates, that her property rehabilitation business, MNB LLC, had secured contracts to perform large scale rehabilitation work on foreclosed properties in Connecticut, Massachusetts, New Hampshire, and Rhode Island.  To entice investors, Brady promised a 50% return on profits and showed forged emails that purported to show the contracts were valid.  In reality, however, the jobs she was hired to do were menial and paid less than $1,000, and she was using investor funds to finance an extravagant lifestyle.  When she became the subject of a federal investigation, she told investors to delete all records of their investments with her company, then met with federal officials to request that they investigate her investors for usury, before attempting to abscond to Vietnam.  DOJ; USAO RI

Constantine Cannon Whistleblower Team’s Top-Ten “Staff Picks” of 2019

Posted  01/27/20
best of the year letters on a stamp
From cybersecurity, cryptocurrency, and “big data” to private-equity backed healthcare, private detention facilities, and the essential whistleblower experience – your prolific and relentless CC WB bloggers have chosen some of their favorite 2019 posts (and one from 2018) – don’t miss these insider-favorite gems!
    1. Your worst nightmare – private data exposed to the unscrupulous – could be curbed...

Top Ten Tax Enforcement Actions of 2019

Posted  01/17/20
Hundred Dollar Bills with American Flag, and 1040 Tax Form
Tax fraud and tax evasion persist each year in various forms and whistleblowers have been at the forefront in combatting entities and individuals cheating the system. Under the IRS Whistleblower Reward Program, whistleblowers who bring information regarding tax fraud to light that results in a recover of over $2 million can be eligible for a reward between 15 to 30% of the government’s recovery. The IRS...

Tax Whistleblowers Gain New Protections and Collect Over $120 Million in Awards in 2019

Posted  01/10/20
Hundred Dollar Bill
The IRS Whistleblower Program released its FY 2019 Annual Report to Congress this week, sharing details on its continued efforts to improve transparency, enforce whistleblower anti-retaliation provisions, and enhance communications. The IRS Whistleblower office also reported that in 2019:
    • The U.S. collected over $616 million in proceeds attributable to whistleblower information; and
    • The IRS paid over...

December 20, 2019

Zurich-based Swiss bank Coutts & Co Ltd. has agreed to pay $27.9 million in an amendment to a 2015 non-prosecution agreement under the Swiss Bank Program between the bank and the U.S.  In 2015, Coutts reported that it held and managed 1,337 U.S. related accounts, with assets under management exceeding $2 billion, and paid a penalty of $78,484,000. In the amendment, Coutts acknowledges that it should have disclosed 311 additional U.S.-related accounts at the time of the signing of the non-prosecution agreement. DOJ

December 10, 2019

HSBC Private Bank (Suisse) SA has entered into a deferred prosecution agreement and agreed to pay $192 million for conspiring with U.S. clients and others to evade taxes over a ten year period.  At the peak of the scheme in 2007, HSBC Switzerland was estimated to hold undeclared assets worth approximately $1.26 billion on behalf of U.S. clients, before it self-disclosed to authorities three years later.  The resulting fine, which took into account the bank’s extensive cooperation with the investigation, represents about $61 million in restitution to the IRS, $72 million in civil forfeiture to the DOJ, and $59 million in penalties.  DOJ
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