Latest "Tax Fraud" Posts

Don’t Mess with the IRS – “El Profe” and the $53 Million Scam

Tax Preparer Rodrigo Pablo “Paul” Lozano, a.k.a. “El Profe,” 61, has been convicted of conspiracy to file false refund claims and for having signed returns claiming more than $53 million in fraudulent refunds.  Just another example of the fact: Don’t Mess with the IRS!

Don't Mess with the IRSBefore the IRS was able to identify and stop the scheme, it had already paid out more than $23 million of refunds to the defendant and his co-conspirators.

According to the evidence at trial, Lozano’s scheme was based on his applying for ITINs. Co-conspirators provided Lozano with fake ID documents, such as birth certificates and Matricula cards supposedly issued by the Mexican government, which Lozano used to obtain ITINs in the names shown on the fake documents.

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Posted by Chuck Gallagher in Tax Fraud and tagged , , , ,

Don’t Mess with the IRS!

Douglas Michael Lang, 50, of Greensboro, NC was sentenced for charges of tax evasion to 18 months in prison plus a special assessment of $ 100.00, a fine of $5000.00, and 3 years supervised release. Douglas Michael Lang must also pay $607,608.00 in restitution.  Here’s but one example of the simple rule – don’t mess with the IRS.

IRS

IRS

On January 15, 2015, Lang was charged with failing to file income tax returns, failing to pay income tax, and committing acts of tax evasion. The acts included the payment of personal expenses from Protocol LLC and R & J Vending LLC, two companies that Lang controlled and owned. Lang also retitled his interest in Protocol LLC, of which he was the sole owner, in the name of House of Psalms, an ostensibly religious non-profit entity controlled by Lang. Lang was also charged with opening a bank account in the name Spirit of Angels, another ostensibly religious non-profit entity controlled by Lang. Each of these acts represented conduct Lang undertook to evade the assessment of tax liability.

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Posted by Chuck Gallagher in IRS Tax Issues, Tax Fraud and tagged , , ,

Accounting Fraud: Do You Know What Your Internal Accounting Staff is Doing?

Accounting fraud is dangerous and something that Amy Hilty, 38, formerly of Stanley, N.C. and now residing in  Dalton, Ohio, pleaded guilty to stealing nearly $400,000 from her former employer.  Hilty pleaded to one count of wire fraud and one count of tax evasion.

Accounting FraudThe background:

From 2008 to 2012, Hilty was employed as accounting manager for a company located in Huntersville, N.C.  As the company’s accounting manager, Hilty’s responsibilities included preparing the company’s financial statements, maintaining QuickBooks, preparing payroll and making bank deposits.  According to court records, Hitly used her access to the company’s accounting system to divert company funds to bank accounts she controlled.  This is accounting fraud at its most basic.

The Cover Up:

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Posted by Chuck Gallagher in Financial Fraud, Fraud Pure and Simple, IRS Tax Issues, Tax Fraud and tagged , , , ,

Playing with the IRS: Not a Smart Move for Dr. Debra Johnson-Jordan

First I know that one is innocent until proven guilty, but in IRS tax cases, you can also bet that one doesn’t get indited unless there’s a HUGE chance of being found guilty.  Playing with the IRS is just pain dumb.

Medical Tax FraudAccording to the US Attorney’s Office for the Northern District of Georgia, Dr. Debra Johnson-Jordan, a physician in East Point, Georgia, has been arraigned on federal charges of tax evasion and failing to file a federal income tax return.

“The indictment alleges that, despite earning significant income, this doctor failed to file tax returns for several years in a row, and then claimed that she was exempt from paying taxes,” said U.S. Attorney John Horn.

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Posted by Chuck Gallagher in Medical Ethics, Tax Fraud and tagged , , ,

Tax Fraud is Unethical – Just ask John Zelepos of Mystic Pizza fame

Julia Roberts made Mystic Pizza famous, but the owner, John Zelepos, 49, or North Stoningto, Conn., has now added to the fame, by being sentenced to 12 months and one day of imprisonment, followed by three years of supervised release, for tax evasion and mystic-pizzastructuring cash transactions.  Zelepos also was ordered to pay a $25,000 fine, forfeit more than $500,000, and pay back taxes with interest and penalties.

Zelepos is the sole owner of Mystic Pizza, LLC, a Schedule C retail restaurant business in Mystic, Conn.  From 2006 to 2010, he allegedly diverted approximately $567,435 in cash from Mystic Pizza’s gross receipts, approximately $330,005 of which was deposited into his personal bank account, his and his wife’s personal checking account, his wife’s personal checking account and passbook savings accounts in the name of each of his three minor children, according to prosecutors.

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Posted by Chuck Gallagher in Business and Personal Ethics, business ethics, Tax Fraud and tagged , , ,

Al Sharpton and Back Taxes. Why is he not in prison?

Being an ethical observer of society, I am often fascinated by “privilege.” Who gets it, who gets to keep it and who uses it to their advantage?  With significant back taxes owed, the question is why is Al Sharpton not in prison?

Al SharptonFor example, when I watch an NFL game, I am always curious to see the celebrities and the politicos who stand on the sidelines. Most of these folks have never so much as played a down of football, yet there they are, hobnobbing with the defensive linemen. Why? I do not know.

Stars and starlets, congress people and other big shots never wait in lines; not for restaurants or airline check-in or to use the restrooms for that matter.

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Posted by Chuck Gallagher in IRS Tax Issues, Political Ethics, politics, Tax Fraud, You Gotta Be Kidding and tagged , , , , , ,