Tax Fraud Victims Suffer Again With The IRS May 9, 2012
Posted by jefhenninger in News.Tags: Fraud, tax fraud
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Identity theft victims are having problems with navigating the IRS to request help, getting their tax refunds. The victims are going through phone transfer hell and in some cases are speaking with agents who do not have the proper information.
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Tax Service Franchise Accused Of Fraud March 29, 2012
Posted by jefhenninger in News.Tags: Fraud, tax fraud
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Dayton, Ohio- ITS Financial LLC an Instant Tax Service Franchiser and Franchisee is the recipient of federal lawsuits where the US Justice Department is accusing them of fraud. This is just another scheme from tax prepares who are unethical at best.
Hazardous Waste Officials Charged With Tax Fraud March 29, 2012
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NY- Six officials of a hazardous waste company have been charged in connection with tax fraud. The tax fraud was in relation to unreported bonuses to the IRS.
Tax advisor allegedly helps hundreds commit IRS refund fraud December 27, 2010
Posted by jefhenninger in News.Tags: tax evasion, tax fraud
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On promotional flyers spread through the United States and Canada, Ron Brekke called himself a U.S. Filing Agent, a kind of a tax guru who could get you out of debt by helping fill out the right forms. But federal prosecutors said Brekke’s methods ended up with hundreds of people filing more than three-quarters of $1 billion in frivolous IRS claims. Brekke, who lived in an office building in California, would hold seminars and correspond by email with people, charging $50 to $75 in fees for his help, according to a flyer that was submitted as evidence in a previous trial.
Allegedly, Brekke would help people fill out IRS 1099-OID forms, telling them to list their total debt as the amount they expected as a tax refund as federal tax withheld. It’s a scam first identified in 2008 as Form 1099-OID Fraud. The IRS cautions taxpayers that the fraud is “disguised as a debt payment option for credit cards or mortgage debt”. The fraud is also marketed as a way to reduce taxes or pay outstanding tax liabilities. It involves the filing of Form 1099-OID, Original Issue Discount, and/or bogus financial instruments such as bonded promissory notes or sight drafts.
In October 2009, that teller caught Donald Mason, one of Brekke’s students, trying to cash a refund check worth $359,926.80 at a Bellingham Bank of America, according to a evidence submitted during Mason’s trial. Mason was found guilty and sentenced to 33 months in prison. Another person using Brekke’s method, John Chung, pled guilty to a similar crime and spent one year, one day in prison.
After those convictions, federal investigators went after Brekke, who they said was still holding financial seminars, despite knowing that Mason and Chung had been captured. This just really shows how some people really buy their own BS. At the first sign of trouble, he should have hired an attorney.
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Businessman Arrested on Federal Illegal Gambling and Tax Fraud Charges March 2, 2010
Posted by jefhenninger in News.Tags: tax fraud
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A Chicago man who allegedly helped a criminal organization run its illegal gambling activities was arrested today on federal gambling and tax fraud charges. The defendant, Casey Szaflarski, acting through his Berwyn business, Amusements, Inc., was charged with conducting an illegal gambling business since 2002, along with two other men—among seven total—who were charged previously. The gambling and tax charges against Szaflarski were brought in a superseding indictment that was returned by a federal grand jury last week and unsealed today following his arrest. The charges allege that Szaflarski failed to report more than $255,000 of business income between 2004 and 2006, and that he failed to file a federal income tax return for 2007.
Szaflarski was scheduled to be arraigned at 2:30 p.m. today before U.S. Magistrate Judge Nan Nolan in Federal Court in Chicago. He was charged with one count of conducting an illegal gambling business, three counts of filing a false federal income tax return, and one count of failing to file a federal income tax return, for a total of five counts in the 16-count superseding indictment.
The charges against Szaflarski were brought in a superseding indictment in United States v. Polchan, et al., 08 CR 115, in which seven other defendants were indicted in May 2009 on racketeering conspiracy charges alleging eight years of criminal activity, including armed robberies and thefts, illegal gambling, obstruction of justice, and arson, including the pipe-bombing of a competing Berwyn video and vending machine business in 2003. Szaflasrki was not charged in the racketeering conspiracy or arson counts. He was charged with conducting an illegal gambling business, ongoing since at least 2002, with co-defendants Michael Sarno and Mark Polchan.
Today’s indictment adds a new forfeiture allegation seeking at least $3,607,201 from Szaflarski, Sarno, and Polchan as proceeds of the alleged illegal gambling activity. The indictment results, in part, from federal search warrants that were executed at more than two dozen suburban locations, including bars and restaurants, on May 27, 2009.
The three counts of filing false federal income tax returns allege that Szaflarski failed to report the following income from his closely-held business, Amusements, Inc.:
- at least $78,417 for 2004 when he reported total income of $373,736;
- at least $82,355 for 2005 when he reported total income of $262,842;
- at least $94,593 for 2006 when he reported total income of $286,071.
The indictment further alleges that Szaflarski failed to file a federal income tax return for 2007 when he received gross income of at least $95,911.
Brick, NJ man found guilty of tax evasion January 8, 2010
Posted by jefhenninger in News.Tags: tax evasion, tax fraud
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John F. Mostler of Brick, NJ was found guilty Thursday of four counts of willfully attempting to evade and defeat paying federal income tax due on more than $470,000 earned over four years.
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