12 Jun Unusual Tax Fraud Cases in Recent Times
Our country is always filled with court cases of people trying to trick the IRS and get more than they are entitled.
Let’s take a look at some of the more recent exciting tax fraud cases.
One Does Not Simply Try to Defraud the IRS
In the period between 2011 and 2016, Jaquon Mucsarney was leading a scheme that tried to defraud the IRS. He filed returns using false information, all to receive refunds.
The scheme led him to create around 50 fake businesses and often filed for corporate returns by logging into the U.S. Treasury site and obtaining an Employer Identification Number. When the IRS started to investigate him, he began using stolen names and Social Security numbers.
He ended up submitting around a hundred of these returns claiming refunds which totaled in more than $2.1 million. The IRS only paid some $320,000 to Muscarney.
However, he ended up paying all of it back and getting sentenced to 12 years in prison with three subsequent years of supervised release, all for trying to defraud the U.S. and stealing IDs.
Cigars Don’t Require Taxes?
Alberto Rodriquez committed mail fraud connected with evading taxes on imported cigars. He was employed as a customs broker in New York.
Rodriquez tried to defraud the U.S. and the cigar importers by creating false documents in which he misrepresented the number of cigars imported. He sent those to CBP and sent correct amounts to the importers.
All of this resulted in Rodriquez evading half a million dollars in federal taxes. He was sentenced to a maximum of 20 years in prison.
A Financial Advisor Giving ‘Poor’ Advice
Here is the case of Henry Brock, a financial advisor who ended up in prison. It was for the role he played in selling false tax avoidance and investment strategies. The result was six years in prison, three years of supervised release, and he had to pay $12 million in restitution.
Henry and his financial services firm developed and advertised an ‘IRS Exit Strategy,’ which promised a way of not paying taxes on IRA withdrawals.
He had people filing fraudulent returns, which resulted in a tax loss of more than $1.1 million. Furthermore, he raised almost $11 million in investments by making false representations to investors.
Tax Evasion from a Healthcare Professional
Another case, among the many, of a business owner trying to save on taxes. These rarely end well, and it certainly didn’t end well for Michelle Medina, who owned and operated a company that provided healthcare services.
In three years, she concealed from the IRS hundreds of thousands of dollars in personal income, by having her company pay her expenses.
She used the simple method of underreporting income and filing false individual income tax returns.
Medina was caught and sentenced to three years of supervised release, but she also had to pay some $840,000 to the IRS.
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