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IRS Times & Inquirer Volume V, Issue 7 Memphis Woman Pleads Guilty to Evasion, Fraud Diane Marie Nadolni had quite a racket. That is, until the IRS caught her. Last month, she pleaded guilty to one count of healthcare fraud and one count of tax evasion. In 1996, Nadolni had a contract to conduct billing services for Southeast Clinical Management, utilizing her company Nadolni Billing Service. During that time, she submitted claims to CIGNA for Medicare and Medicaid reimbursement in the amount of $4,972,251.09, saying the bills were for services provided by Dr. Jack E. Schaff when, in fact, she knew no such services had been rendered. Additionally, for the 1996 calendar year, Nadolni said her income was $28,579 with a tax due of $6,078. In face, her income was substantially higher because of the money she collected from fraudulent CIGNA claims. She faces a maximum penalty of five years in prison, a $250,000 fine and three years of supervised release.
After 10 Years, Florida Man Indicted for Evasion For 10 years, the IRS has tried to collect taxes from Michael A. Cain, a 56-year-old former computer consultant. Earlier this year, a federal grand jury issued a seven-count indictment. According to the indictment, Cain has failed to pay $382,000 in income taxes from the computer-consulting business he operated in Virginia from the late 1980s to early 1990s. Cain, who now lives in Largo, Fla., paid $80,000 in credit card debts and gave $30,000 to family members during the time the IRS attempted to collect its money. The indictment alleges that Cain attempted to conceal his income by cashing all checks at check-cashing companies, thereby concealing the paper trail when he deposited cash into a bank account in his son’s name. He will be arraigned in Virginia.
Retired Dentist Indicted: Tax Fraud Gregory G. Lockhart, United States Attorney for the Southern District of Ohio indicted Jon C. Pensyl, a 67-year-old retired dentist now living in Scottsdale, Ariz., for tax evasion. According to the indictment, Pensyl allegedly attempted to evade his taxes by failing to file tax returns and by concealing and attempting to conceal his true income from the Internal Revenue Service for the years 1995, 1996 and 1997. In addition to his dental practice, Pensyl owned a 50 percent interest in High Street Properties, which owned the building that housed his dental practice as well as several other properties on Worthington’s High Street. To avoid paying taxes on income from his dental practice and properties, Pensyl created and transferred his assets into two trust entities. He faces a maximum penalty of five years in prison and a $250,000 fine for each of the three counts.
Hawaiian Businessman Receives 51 Months for Tax Evasion, Conspiracy Hawaii is, of course, America’s paradise. But that doesn’t mean IRS agents aren’t on the lookout for tax cheats. Ask Hawaiian businessman Michael H. Boulware, 54, who received 51 months in prison after being found guilty in four counts of federal income tax evasion, five counts of filing false income tax returns and one count of conspiracy to make a false statement in order to influence a federally insured financial institution. According to evidence presented at trial, Boulware failed to report more than $10 million in income for the years from 1989 to 1997, resulting in an $8,105,714 tax loss for the federal government and the state of Hawaii. Boulware, who received a seven-figure salary from his company – Hawaiian Isles Enterprises (HIE), a tobacco, coffee, water and vending machine business with sales of approximately $85 million per year – also routed millions of dollars from the company to bank accounts in the Kingdom of Tonga and Hong Kong. He also attempted to open an account in Ecuador for money laundering. The Internal Revenue Service Criminal Investigation Division conducted the eight-year investigation into Boulware, with the assistance off the Federal Bureau of Investigations.
CALIF. CHIROPRACTOR RECEIVES ONE YEAR An El Monte, Calif., chiropractor received one year and a day in prison after pleading guilty to filing false corporate income tax returns. Roberto Roman, 61, pleaded guilty to two counts of filing false income tax returns for the years 1995 and 1996. Roman treated patients referred to him by personal injury attorneys, who gave him checks for the treatments. He then cashed those checks at the issuing banks or at check-cashing businesses to conceal the income. For the years 1995 and 1996, Roman failed to report approximately $497,000 in income. The IRS investigated this case as part of a larger investigation into tax violations by attorneys, doctors, cappers and administrators.
OHIO MAN CHARGED WITH TAX EVASION A federal grand jury charged Mark W. May, 41, of Xenia, Ohio, with six counts of tax evasion and payroll tax crimes. According to the indictment, May allegedly did not pay over $514,842 in payroll taxes of Maranatha Financial Group and failed to make his income tax payments for the years 1995 and 1996 by fraudulently claiming a refund. He faces five years in prison and a $250,000 fine for each count.
SAN FERNANDO VALLEY CONTRACTOR ADMITS TO TAX VIOLATION Gary Lee Morris, a 60-year-old San Fernando Valley contractor, pleaded guilty to a felony tax charge in connection with his 1994 and 1995 federal income tax returns that failed to report a substantial amount of income. Morris concealed money by having his clients write multiple checks on the same day. He would then only record one of the checks, depositing that one into his account, and then turning the others to cash before depositing the payments. At sentencing, the government will attest that Morris did not report more than $200,000 in income for the years 1995 and 1996. He faces a maximum sentence of three years in prison.
ARIZONA MAN PLEADS GUILTY TO FILING FALSE INCOME TAX RETURN James Neil Feichtinger, 62, of Scottsdale, Ariz., didn’t have any taxes withheld for the year 1995, but he requested a hefty refund, according to an indictment issued last month. According to the indictment, Feichtinger falsely claimed earnings of $96,000 from his employer and over $38,000 in federal tax withholdings. In fact, he had earned nothing from his employers. He faces up to three years in prison, a $100,000 fine or both.
CHARGE: NEW ENGLAND MAN FILED FALSE CORPORATE TAX RETURN A federal court in Massachusetts charged Martin J. Hanley, 51, of filing a false corporate income tax return. The owner of Hanley Moving & Storage for the tax year 1996, Hanley reported false expenses for salaries, wages and insurance totaling approximately $82,200. He faces up to three years in prison and a $250,000 fine.
“Who Else Wants To Win $250 Transferable Gift Certificate?” Take my Trivia Challenge and you could win too! This is one of my favorite sections. Each month I’ll give you a new trivia question. The first THREE people who call my office with the correct answer win a free $250 reduction on any IRS service I provide. (One per client, please.) And best yet, your certificate is transferable. Use it yourself, or give it to a family member or special friend and help them save money. Take your best guess, then call me at 732 240 4055. This Month’s Mega Trivia Question… Which country hosted the previous World Cup, in 1998? a) United States Call me right now with your answer! 732 240 4055
IRS Question Corner… Question: A friend of mine owes the IRS more than $250,000 in income taxes over the last seven years. He’s filed every year, stating exactly what he owes, but he says he’s not going to pay it because he doesn’t have to. Not filing is illegal, he says, but not paying is legal. Is he correct or just insane? Answer: Good question. The answer: He’s both correct and insane. It’s true that most people who are indicted for tax evasion or tax fraud either do not file an income tax return or underreport their earnings. These are crimes. But if your friend thinks he can file every year, not pay and expect the Internal Revenue Service never to notice, he’s, well, good enough as certain to be accepted at the loony bin. While the IRS may not have contacted your friend to collect the money, chances are great that either the agency will soon realize he is not paying or already knows he isn’t paying but is just now putting together an investigation. The IRS will attempt to collect what’s owed, placing a lien on your friend’s property if necessary, and dragging him through a lengthy, costly court battle until the money is paid. Truth be told: Your friend won’t have a chance because the IRS won’t give up. But he is in a good position in that the IRS has not contacted him. His best chance of continuing his life without IRS headaches is to come forward to the agency with the help of a qualified tax professional. Because IRS agents hate nothing more than chasing down debtors, IRS officials look very kindly on taxpayers who come forward to settle their debts. With the help of a qualified tax professional, your friend could reduce his $250,000 debt to pennies on the dollar and possibly even find a way to enter into an installment plan with the IRS. If he waits for the IRS to catch him, he’ll be in a world of trouble. I’m an IRS Problem Solver, and I help people like your friend. For a free, no-risk consultation, please call my office at 732-240-4055.
I’d Like To Hear From YOU! Whether you’d like to avoid the IRS, contact the IRS, settle with the IRS or just want to refer a friend, relative or client, I’d love to hear from you. I would be happy to provide you or that special person you refer a no-obligation confidential consultation to explain every option available to solve IRS problems. David A. Semanchik, Esq. Copyright © 2001 USTC. All rights reserved. |
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