The residents of Massachusetts may be interested to know about a case of an immigrant who portrayed himself as a priest, opened 30 accounts and interacted on Facebook to rake up more profits. This African born immigrant has decided to take an advantage of the freedom America offers. The individual filed 17 false claims to IRS and received refunds within the range of hundreds of thousands of dollars. He used different identities to obtain the money from the IRS, but there is no trial scheduled as of yet because he has been diagnosed as mentally incompetent. Court-appointed psychiatrist has stated that the individual is unable to make sound decisions or understand the nature of his crimes.
A billionaire's wife in Russia has accused her estranged husband of hiding significant assets to keep them from her through their divorce process. The two have battled over the accusations in at least seven countries concerning a portion of the man's $9.5 billion estate beginning in 2008 when the wife filed the divorce complaint. This situation has larger implications due to the use of offshore accounts and the government's mission to pursue individuals in Boston and other areas who are using these types of accounts to commit tax evasion. The billionaire's wife in this case is accusing her husband of using offshore holding companies and trusts to hide the couple's assets. She claims that he has stashed away approximately $500 million of art, a yacht valued at $80 million and jewelry worth approximately $36 million. She has pursued her case in a variety of courts, including one in the United States to go after approximately $6 billion that she believes is owed to her. Her case represents the significant value of assets that some people attempt to hide through the use of offshore accounts.
The IRS is aware of several tactics that unethical tax preparers use, and it is trying to warn the general public this tax season. Tax preparers may file false income tax returns by claiming more personal expenses or business expenses, claiming deductions or credits that they do not qualify for and using exemptions in an excessive manner. The IRS has also seen tax preparers who may change income figures on the tax returns to try to get more credits for the client. However, Boston taxpayers are the ones who are ultimately held responsible when fraudulent income tax returns are submitted. Typically, they are required to pay any additional taxes, interest and penalties that are incurred due to a false income tax return. They may also be held criminally liable in some cases.
A Somerville woman who owned a tax preparation business for about six years was sentenced on Jan. 29 to 61 months in prison. She has been convicted of identity theft and tax fraud following a string of tax crimes. According to the District of Massachusetts United States Attorney's office, the woman prepared false tax returns on her behalf and the behalf of the clients of her Somerville business. In some instances, she used clients' identities without their consent or knowledge. She pleaded guilty to 32 counts, including charges for aggravated identity theft, filing false returns with the Internal Revenue Service and forging United States Treasury check endorsements.
A former Amtrak employee recently fled to avoid going to prison due to tax evasion. As a jury delivered its verdict of 29 guilty felony counts, the 60-year-old defendant was nowhere to be found. The woman was found guilty of insurance fraud, tax evasion, perjury and grand theft from her employer's retirement board. She received in excess of $500,000 from disability payments due to accidents that the prosecution says she faked. She could receive up to 33 years in prison, but she escaped while she was free on a $50,000 bail that the judge ordered during her trial that lasted two months.
A tax preparer received an 18-month prison sentence after pleading guilty to submitting taxes filed incorrectly on behalf of her customers. The woman is 51 years old and pleaded guilty to the offense in November of 2012. According to authorities, the woman operated a Springfield, Massachusetts tax preparation business. Between February 2007 and April 2008, she knowingly prepared numerous fraudulent tax returns so that customers would receive larger tax refunds. A United States Attorney with the Department of Justice stated that the woman made misrepresentations to IRS representatives, provided false documents for customers to give to the Massachusetts Department of the Internal Revenue Service, and advised and told her customers to lie to the IRS. Authorities have discovered that the tax preparer is from the Dominican Republic and does not have a valid visa to be in the United States. The prosecution believes that the woman used identifying information from another person who is a legal United States resident to operate her business, open bank accounts, open credit cards and acquire a driver's license.
A financial adviser faces multiple charges for tax crimes and other crimes. He currently faces five charges for mail fraud, 13 charges for interstate transportation of goods gained in a fraudulent manner, 10 charges of money laundering and three charges for tax evasion. The man is accused of mismanaging funds for two family friends to benefit himself. The damages in question equal to more than $1 million. The man had previously filed bankruptcy and received federal bankruptcy protection. However, the new allegations may change the situation and leave him civilly liable to these people and to other lawsuits against him due to fraudulent information that he provided to the bankruptcy court.
A man who conducted seminars in the United States and Canada regarding commercial real estate investment has been convicted of multiple counts of tax evasion. According to tax department officials, the man failed to file income tax returns between the years of 2001 and 2007. The man's income for the period of time was reportedly $3.6 million and resulted in approximately $213,000 in unpaid taxes. In addition to his seminar work, he also worked for the Trump Organization as an independent contractor. The man pleaded guilty to five charges, which are classified as class E felonies. His jury trial was scheduled just a few days later at the time of the plea. After the government began its investigation, the man filed the delinquent tax returns. He faces a potential maximum sentence of four years for each charge.
An employee who once worked at the District of Columbia's tax office has pled guilty in federal court to conspiracy to defraud the government as well as first-degree theft. These charges stem from tax crimes allegedly committed while the woman was working part-time at a Washington tax service in 2009 and 2010.The prosecutors in the case claim that the woman helped 282 people or companies file fraudulent tax returns with the District of Columbia as well as 973 fraudulent returns with the federal government. She was accused of supplying receipts for charity spending that were fraudulent so that tax filers could claim deductions. The activity took place over the 2008 and 2009 tax seasons, but some of the fraudulent refunds dated back to 2006. The total taken in the fake receipt scam has been estimated at $14.7 million.
Professional football fans in Massachusetts and around the New England region may be familiar with the name Michael Bennett. Bennett, who played for several years in the NFL, maybe most notably with the Minnesota Vikings, pleaded guilty to wire fraud earlier this year and was sentenced last week to serve 15 months in prison for his crime.