More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud)

More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud)

If you liked our last stories, these will blow you away.

More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Shirley, New York, NYC

Shirley, N.Y.

In our first short story, we’ll introduce Fred Towle Jr., 52. Towle pleaded guilty to endorsing a false return for 2012 that underreported his business income.

Towle owned the company East Coast Marketing. He used this company to consult with political candidates and assist homeowners for his own gain. Furthermore, he was expediting approvals for permits from various governmental entities in Suffolk County, N.Y.

Towle’s fraudulent activity began in 2012. He falsely reported no taxable income from businesses controlled by him, including East Coast Marketing. Knowing that he was earning approximately $246,000 in taxable corporate income for that year, he still claimed nothing.
Between tax years 2012 and 2014, Towle failed to declare approximately $1.2 million in income; this resulted in a tax loss to the U.S. of some $307,427.

Towle faces a maximum of three years in prison and a fine of up to $250,000. His plea included an agreement to pay $307,427 in restitution, which was the full amount of his tax liabilities.

Hamden, Conn. More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Hamden, Connecticut, CT

Next, we have Ira Malkin, 49. This salesman is guilty of tax evasion, and was sentenced six months in prison. He also has three years of supervised release.

Malkin worked as a principal salesman for Good Copy Printing Center Inc., New Haven -according to court documents and statements in court. He earned substantial commissions and GCP paid many of Malkin’s personal expenses.

With Malkin’s consent, GCP reduced his commissions by the amount of personal expenses the company paid. He then reported to the IRS that Malkin had earned substantially less income than he truly earned.

In a second scenario, GCP handled printing jobs for Comcast. GCP mailed flyers and paid the postage with the expectation that the company would be reimbursed for that expense. Malkin had GCP pay the postage for the Comcast mailings and made Comcast reimburse him for the cost of the mailings. GCP reduced his earned commissions by the amount of postage paid by GCP. Through this arrangement, between approximately 2009 and 2012 GCP further under-reported Malkin’s income on filed W-2s.

Through this scheme, Malkin underreported more than $1.5 million in income. He skipped out on $484,581 in federal income taxes! Even though he pleaded guilty in February and paid all of his back taxes, Malkin still owes the IRS more than $700,000 in interest and penalties.

During his supervised release, he must spend six months in home confinement and perform 200 hours of community service.

More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Fairfield, OhioFairfield, Ohio

Preparer Janet Benitez, 44, who prepared returns for illegal aliens and concealed her own income, pleaded guilty to filing a false income tax return, according to published reports.

During the course of 5 years, Benitez reportedly submitted returns on behalf of 23 illegal aliens seeking fraudulent refunds of at least $123,999. She not only failed to report her prep fees for tax years 2011 through 2015, but she filed false income tax returns in her name and her spouse’s name when she should have filed one return that combined their income. However, this would have resulted in tax due… apparently a cost she didn’t want to pay.

She has reportedly agreed to pay $265,839 in restitution to the IRS.

Note: Filing a false income tax return carries a maximum of three years in prison and a fine of up to $250,000.

Peabody, Mass. More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Peabody, Massachusetts, MA

William Panousos, 67; his wife, Theodora, 65; and their son, Konstantinos, 39 were taken down as family. These current and former owners of Giovanni’s Roast Beef & Pizza have been sentenced in connection with skimming cash receipts from Giovanni’s and failing to report the cash on their tax returns. They avoided payment of some $550,000 in taxes.

The family each received three years’ probation, with the first 18 months confined to the City of Peabody. Next, they were ordered to pay a fine of $150,000. They were also ordered to pay restitution of $549,883 to the IRS.

In November, all three pleaded guilty to one count of conspiracy to defraud the U.S. William Panousos also pleaded guilty to three counts of aiding and assisting in filing false corporate and individual returns. Theodora pleaded guilty to four counts and Konstantinos to two.

During tax years 2013 through 2015, the Panousoses skimmed some $2.8 million in cash receipts from Giovanni’s and did not deposit them into the business’ bank account or report them to their preparer. They diverted about $1.5 million of those cash receipts to their own personal use. They used the rest of the skimmed cash to pay some of their business expenses, including a portion of payments to suppliers and a portion of employees’ salaries. In addition, the defendants failed to report those cash expenses on their returns.

More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Whiting, Ohio, OHWhiting, Iowa

Farmer Kurt Neldeberg, 65, filed false and fraudulent returns and has been sentenced to two years’ probation.

Neldeberg pleaded guilty in February. He admitted that from at least 2009 through 2012, he failed to report some $315,512 in income from grain sales. This resulted in more than $100,000 in unpaid taxes due and owing.

He admitted that he deposited proceeds from farm grain sales into personal bank accounts and failed to inform his bookkeeper and his preparer that he had done so. His farm receipts on Schedule F of his joint federal returns resulted in under-reported income for each of the tax years 2009 through 2012.

Neldeberg was also ordered to complete 120 hours of community service, to pay a $100 special assessment and to make full restitution to the IRS. Neldeberg previously posted a $125,000 cash bond to the IRS for restitution.

St. LouisMore Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), St Louis, Missouri, MO

Prep-service operator Asmerom “Ace” Keleta, 33, has been sentenced to five years in prison for conspiring to defraud the U.S. through tax fraud and for preparing fraudulent returns.

According to court documents, Keleta operated University City Tax Service starting in 2012. He conspired with employees Miyoshi Lewis and Teklom Paulos to prepare fraudulent returns for clients. Keleta directed the employees to inflate refunds by listing false American Opportunity Credits and federal fuel tax credits. He also created false Schedule C income to fraudulently maximize Earned Income Tax Credits.

Keleta also prepared false returns for clients and, as owner of University City Tax, received a percentage of clients’ inflated refunds.

He was also ordered to pay $662,645 in restitution.


More Recent Tax Cases You’ll Enjoy Reading About (Tax Fraud), Atlanta, GA, Georgia, ATL


A federal court has barred preparer Marjorie St. Jean and MarjorieStjeanLLC from preparing federal returns for others and owning or operating a prep business.

The court also ordered that St. Jean and MarjorieStjeanLLC pay $367,346.14, representing the gains for the preparation of returns making false claims.

St. Jean and MarjorieStjeanLLC, an entity through which she operates prep stores, prepared returns that included fraudulent claims for the EITC, often based on bogus dependents, fabricated business income and expenses or false filing statuses. The court also determined that MarjorieStjeanLLC often prepared returns that falsely claimed fuel tax credits, household help income, unreimbursed employee business expenses and self-employment income or expenses.

Jeffrey Schneider, EA, CTRS, NTPI Fellow has the knowledge and expertise to help you reach a favorable outcome with the IRS. He is the head honcho at SFS Tax Problem Solutions as well as an Enrolled Agent and a Certified Tax Resolution Specialist.
Now What? I Got A Tax Notice From The IRS. Help! Defining and deconstructing the scary and confusing letters that land in your mailbox. Jeff defines and deconstructs the scary and confusing letters in a fashion that mixes attention to detail with humor and an intricate clarification of what is what in the world of the IRS.

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