Former New York City Council Member, Chaim Deutsch, was sentenced to three months in prison for filing a false tax return in connection with outside income he received while serving on the city council.
In addition to his job as a council member, Deutsch was the owner of Chasa Management, a real estate management company. From 2013 to 2015 he filed false individual and corporate tax returns that decreased his tax liability by claiming fictitious business and personal deductions. He deducted rental payments for an apartment he maintained in Brooklyn in order to obtain residency for his council position, utilities, and routine expenses such as food and clothing.
As a result of the false deductions, Deutsch received a refund of $1,937 in 2013, $262 in 2014 and $7,511 in 2015. During that time period he claimed $157,000 in false business expenses on Chasa Management’s returns and $111,000 in false expenses on his individual tax returns. These exaggerated expenses helped Deutsch evade $82,076 in taxes.
In addition to the three month prison term, Deutsch will serve one year of supervised release, pay a fine in the amount of $,5500, and pay restitution to the IRS in the amount of $107,007.05. He also lost his council seat as a result of violating his oath of office by defrauding the federal government.