Plumbing Companies’ Money Goes Down the Toilet Thanks to Crappy Controller!

Rosalba Meza, the controller for two plumbing companies, was arrested for embezzling more than 3 million dollars.

 

From 2017 through 2019, Meza made unauthorized transfers from company bank accounts into personal bank accounts totaling $3,071,880. In February 2019 Meza told company executives they did not have funds to meet payroll, but failed to disclose that her embezzlement was the cause of the shortfall. Later that same year, when the companies were facing enforcement action from the IRS due to the unpaid payroll taxes, she told the executives that she did not pay the payroll taxes because she had used the funds to pay employees.

 

Meza used the stolen funds to make $292,137 in cash withdrawals at bank branches, and more than a million dollars at ATMs in the United States and Mexico. She also wired $870,209 to bank accounts in Mexico owned by family members and another $250,000 in transfers to other family members and friends. She failed to report any of the stolen funds on her income tax returns.

 

Meza faces restitution, fines and a maximum prison sentence of up to 30 years

IRS Reels In Tax Cheating Fisherman

Alfredo Loya, a commercial fisherman from Virginia, was sentenced to 15 months in prison for failing to pay his federal income taxes for nearly a decade.

 

Loya was employed by a number of companies as an independent contractor from 2006 to 2014. From 2006 to 2008 and from 2014 to 2016 he filed no tax returns. He filed returns from 2011 to 2013 but did not pay any of the taxes he owed during that time.

 

In order to avoid paying taxes and in an effort to hide his income, Loya rarely used a credit card and paid for almost everything in cash. From 2012 to 2016 he cashed 71 paychecks made payable to him from fishing companies, for a total of $840,400.

 

The overall tax loss to the IRS was determined to be $238,967.

Pharmacy Owner Compounds Crimes by Deceiving the IRS!

The owner of two compounding pharmacies, Matthew Hogan Peters, was sentenced to prison for evading payment of nearly 5.5 million dollars in personal income taxes and for submitting false reimbursement claims to CVS Caremark.

 

Peters devised a scheme to incentivize healthcare providers to write prescriptions for custom mixed medications that generated large reimbursements for his pharmacies. During an audit conducted by CVS, dozens of claims lacked records that proved customers received the medications. When questioned, Peters submitted proof of customer signatures that were eventually all tracked back to DocuSign files on his personal computer.

 

To further complicate his criminal liability, Peters generated nearly 14 million dollars in gross income between 2014 and 2017 but hid millions from the IRS. He spent 3.3 million dollars for property and construction in Belize, more than five million dollars for personal residences in Laguna Beach and San Carlos, California, and millions in cash transfers to straw entities and trust accounts in the names of others for his personal use. Between 2014 and 2017 Peters underreported his income by more than 5.4 million dollars.

 

Peters was sentenced to three years in prison and ordered to pay $3,441,263 in restitution to the IRS.

McPhail Fails, Lands in Jail!

The owner of a roofing company, Ronald McPhail, was sentenced to one year and one day in prison for failing to report income from 2014 to 2019. During that time McPhail’s business generated more than 7.1 million dollars in revenue and approximately 2.43 million dollars in income. To conceal the income McPhail cashed customer checks without first depositing them, and asked his customers for payments in sequentially numbered checks in amounts less than $10,000. He then cashed the checks at different bank branches on different days.

 

In addition to the prison sentence he was ordered to pay a fine of $10,000 and restitution to the IRS in the amount of $798,494.

“Garmento” Loses the Shirt Off His Back!

Sang Bum Noh, the owner of a wholesale garment company in the fashion district of downtown Los Angeles, was sentenced to 12 months and one day in prison for undervaluing imported garments to avoid paying millions of dollars in import duties, failing to report millions of dollars in income, and failing to report large cash transactions.

 

Over the course of four years Noh undervalued imports from China by approximately 82.6 million dollars, which reduced the amount he owed in tariffs by 17.1 million dollars.

 

At his retail store Noh recorded cash transactions and credit card sales separately. He did not report any of the cash sales on his tax returns and underreported the credit card sales. He also received 365 cash payments at the store for more than $10,000 over a two-year period, totaling 11.1 million dollars, and did not report any of the transactions.

 

Authorities found $35 million dollars in cash in shoeboxes and garbage bags when they searched Noh’s Bel Air home, which was used to pay back $16,806,412 to the IRS and $18,421,443 to Customs and Border Protections. There is a forfeiture money judgment on the case of $81,564,856, and an additional forfeiture of $1,104,997 from seized funds.

Your IRS Questions Answered Here…

Question: I’m currently separated from my spouse, who owns his own business, and we are in the process of getting a divorce.  I have always filed jointly with my husband and now the IRS is sending me notices stating I owe $77,000.  I have no idea how they are coming up with this amount as my spouse was always responsible for making payments to the IRS.

Answer:  You may be able to avoid this liability entirely under the IRS’s Innocent Spouse Relief rules.  Under federal law if an income tax return is signed by both husband and wife, both spouses are 100% responsible for the taxes owed.  However, the law permits special consideration where a spouse cannot be held responsible for actions that are attributable to the other spouse.

If you meet certain criteria you may be able to apply for innocent spouse relief 3 different ways. One example is, your spouse didn’t report all their income; and you were not aware of it and no reason to know about it when you signed the tax return; and it would be unfair to hold you liable for the taxes owed due to your spouse’s error. If you feel you were deceived by your spouse or tricked into signing a return you thought was correct this will help your case too.  There are many other ways you may be eligible for relief under the IRS’s innocent spouse rules and we can help sort this out and determine the proper path for resolution.

We  are experts in IRS tax problem resolution and help taxpayers with their IRS Problems every day.  We know the “ins and outs” and know how to navigate the IRS maze. There is a solution to EVERY problem. Call us today for a FREE, no-obligation confidential consultation!

Accountant Steals Two Million Dollars from Abused Children

Angelia Brown, of Knoxville, Tennessee, was convicted of wire fraud and filing a false tax return after embezzling more than two million dollars from her employer, a  nonprofit that works with abused children.

From 2012 through June 2020 Brown, a staff accountant for the organization, forged company checks and deposited them into her personal bank account. She hid her actions by altering the checks after she had deposited them. Brown forged 885 checks, causing a loss to her employer of $2,064,464.99.

Brown failed to report the embezzled funds as income on her tax returns for tax years 2012 to 2019, resulting in a tax loss to the IRS of $552,224. She was sentenced to three years in prison and ordered to pay restitution of $2,616,688.99 to her former employer and the IRS.

Tax Cheat Hides Millions of Dollars and Applies for Food Stamps

Robert Lund was sentenced to prison on a tax evasion case that goes back to 1997, when he was audited by the IRS and it was determined he owed more than 2.7 million dollars in taxes plus penalties.

Lund appealed the tax assessment and lost. In response, he stopped paying taxes altogether and continued to hide his assets and income by transferring title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts, and even applied for and received food stamps and Medicaid benefits. On his food stamp and Medicaid applications, Lund claimed to be a part-time handyman earning just $810 a month. He stole approximately $70,000 in public benefits.

Lund used his untaxed profits to buy 90 acres of land in Oregon, on which he built a 7,000 square foot house with a private landing strip. He purchased a former city hall and post office building, a trailer park with rental units, and two rental houses. In addition to the consulting business he also owned a health food store, a bookstore, and a scuba diving equipment and lessons company.

After ignoring dozens of letters, bills, and summonses for financial records from the IRS, Lund was finally arrested. He was sentenced to 41 months in prison and ordered to pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.

Lottery Winner’s Luck Runs Out

Mustafa Shalash pleaded guilty to one count of filing a false tax return in connection to lottery winnings in 2015. Shalash won a million dollars in the Ohio state lottery and that year declared $1,069,100 in winnings, along with $1,069,100 in gambling losses. To hide the money he wired $690,000 to bank accounts he owned abroad, including $440,000 to an account in Jordan.

IRS investigators discovered that Shalash regularly flew to Jordan with cashier’s checks in amounts ranging from $10,000 to $25,000 that he deposited in personal bank accounts without filing the required Form 105, Report of International Transportation of Currency or Monetary Instruments. On his tax returns he also failed to report that he had foreign bank accounts.

Shalash caused a tax loss to the IRS of $255,967. He faces a maximum sentence of three years in prison, a fine of up to $100,000 and restitution.

Liquor Store Owner Could Use a Drink Right About Now

A Florida liquor store owner, Ajay Kumar, was sentenced to prison for tax evasion for failing to report the store’s cash sales. For tax years 2015 to 2018, Kumar only reported credit card sales on his tax returns and underreported the liquor store’s gross receipts by approximately $1,718,945. For those same tax years he failed to pay approximately $481,304.68 in federal income taxes.

Kumar was sentenced to 18 months in prison, fined $7,500 and ordered to pay $481,304.68 in restitution.