Massachusetts residents, like others, are required to pay a certain portion of their income in taxes or risk punishment. While arrests for income tax evasion are not common, they do occur from time to time. The Department of Justice reports that a couple in the Caribbean have been indicted for concealing money in offshore bank accounts in order to defraud the Internal Revenue Service.
A Milford man has been charged with using evasive tactics to avoid paying taxes on his income. The tax evasion charges spring from allegations that he used check-cashing services to cash the majority of his check received from clients for his masonry business. He is also accused of paying his employees in cash and failing to withhold taxes on their income.
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.
A 70-year-old man formerly of Quincy was convicted for five counts of tax evasion as well as stealing funds from a federal housing assistance program. The man was also convicted of two counts of conspiracy and two counts of making false statements. The tax evasion convictions and related charges involved two elaborate schemes: one involving a false-invoice scheme and the other Section 8 housing fraud.The crime began after he was hired as a salesman by Xcel Fire Protection, an indoor sprinkler company. The man told Xcel's general manager that he owned several businesses, including a trucking company, moving and real estate business and a business equipment company. According to authorities, the man sent false invoices in the names of the companies that he owned to Xcel for goods or services that these businesses had never provided. The general manager authorized the company to pay the invoices by check. In exchange, the man gave the general manager 90 percent of the value of the checks while keeping 10 percent for himself. The man and the general manager did not pay the correct amount of income taxes toward the $490,000 that they received through these transactions.
A judge in New York ordered an 83-year-old Massachusetts man to pay a large civil penalty after he was found guilty of tax evasion. He is said to have hidden $5.7 million from the Internal Revenue Service. According to authorities, the man had spent several years of his life attempting to hide his wealth from the IRS. He used Swiss bank accounts to prevent authorities from learning about his real wealth. However, Americans are required to file Foreign Bank and Financial Accounts Reports when they have a foreign bank account with a balance of more than $10,000. This man was accused of failing to file these reports from 2006 to 2011. The man's financial adviser was also charged with conspiring with United States taxpayers to hide over $184 million from tax authorities.
A lawyer from Colrain received a sentence that includes time in federal prison for his conviction of a tax crime. Formerly, he practiced in Greenfield but has since had his legal license suspended. The man received a six-month prison sentence for his tax evasion conviction. He was also sentenced to a year of probation and was fined $8,000. The charges stem from his failure to report the full amount of his income from 2005 to 2008. According to his lawyer in the case, his actions were a result of financial stress caused by a divorce. Prosecutors say that the man has already paid approximately $150,000 in delinquent taxes.
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 New Jersey man pleaded guilty to a tax evasion scheme that resulted in hiding up to $4.7 million. The scheme also involved HSBC Holdings. According to the man's plea, he conspired with bankers from HSBC to hide some of his business assets from the Internal Revenue Service. The bankers in question were in New York, London and Geneva. The man is only one of many HSBC clients who is suspected of using undeclared accounts to commit tax evasion. According to the man's charging document, he and others used shell companies that were located in jurisdictions that had tax havens. The businesses were specifically created to hide ownership and who controlled the companies' assets and incomes from the Internal Revenue Service.
Actor Stephen Baldwin was recently arrested for tax evasion in his home state of New York. He is charged with not filing his state taxes for the past three years, resulting in owed back taxes of $350,000, which does not include any applicable penalties. Baldwin resides in Rockland County in the state of New York. According to the district attorney's office, the state and county are facing severe financial setbacks, and this situation is influencing the state to take action against individuals who owe taxes. Stephen Baldwin has been under investigation this past year by the Rockland County Special Investigation Unit and New York State Department of Taxation and Finance office. The actor's representative, however, stated that he was not trying to deceive anyone
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.