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Florida Businessmen Face Prison Time Following Multi-Million Dollar Tax Evasion Scheme

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    According to a Department of Justice press release, two Florida businessmen have been sentenced after being convicted of tax evasion. This story underscores the serious consequences that can arise from evading tax obligations and falsifying tax documents. If you have failed to file a tax return for one or more years, or have failed to correctly report your income on a filed tax return, it’s imperative to seek counsel from a reputable tax defense attorney as soon as possible.

    Businessmen Cashed Customer Checks at Check Cashing Businesses to Avoid Proper Income Reporting

    Court records reveal that David Aaron and Russell Ultes, co-owners of the Fort Myers-based Marlin Construction Group LLC, employed an illegal method to conceal a significant portion of their income in 2018 and 2019. The duo redirected millions of dollars worth of customer checks intended for Marlin, choosing instead to cash the checks at check-cashing businesses located in neighboring counties. These funds were then used for personal expenses, including the purchasing of jet skis, boats, and high-end vehicles. 

    Note: The IRS is well known to randomly raid check-cashing outfits looking for just this pattern of illegal activity. If you have been illegally understating income in this manner, consider making a voluntary disclosure to avoid criminal tax prosecution.

    The Manipulation of Marlin’s Financial Records

    In their efforts to illegally evade income tax obligations, Aaron and Ultes manipulated Marlin’s financial documentation, leading to a gross underreporting of the company’s income for the years in question. Their efforts didn’t stop at the corporate level. They provided Marlin’s tax return preparers with fraudulent information, resulting in the creation of fraudulent 2018 and 2019 corporate tax returns. Since the distorted figures from the corporate returns were reflected in Aaron and Ultes’s individual returns, their personal income tax returns liabilities for the same period were also fraudulently understated. Collectively, the defendants caused a loss of over $1.13 million to the IRS.

    Consequences: Prison Time and Hefty Fines

    Following their recent sentencing, David Aaron was mandated to serve 18 months in federal prison, followed by a three-year term of supervised release. He was also ordered to pay a $50,000 fine. Russell Ultes received a nine-month prison sentence and an additional nine months of home confinement. Post-confinement, Ultes is expected to undergo three years of supervised release and pay a substantial fine of $75,000.

    The Path Back into Tax Compliance WITHOUT facing criminal tax prosecution.

    One can draw parallels between this case and many others that reiterate the importance of adhering to federal and state tax laws. It serves as a cautionary tale for those contemplating bending tax rules or those who already have. If you have failed to accurately report your business or individual income taxes or have failed to file a tax return altogether, you should strongly consider reaching out to a seasoned tax attorney. Together, you will work to establish the pertinent facts of your case and develop a strategy to come into tax compliance.

    If you have failed to file a tax return for one or more years or have taken a position on a tax return that could not be supported upon an IRS or state tax authority audit, eggshell audit, reverse eggshell audit, or criminal tax investigation, it is in your best interest to contact an experienced tax defense attorney to determine your best route back into federal or state tax compliance without facing criminal prosecution.

    Note: As long as a taxpayer that has willfully committed tax crimes (potentially including non-filed foreign information returns coupled with affirmative evasion of U.S. income tax on offshore income) self-reports the tax fraud (including a pattern of non-filed returns) through a domestic or offshore voluntary disclosure before the IRS has started an audit or criminal tax investigation/prosecution, the taxpayer can ordinarily be successfully brought back into tax compliance and receive a nearly guaranteed pass on criminal tax prosecution and simultaneously often receive a break on the civil penalties that would otherwise apply. 

    It is imperative that you hire an experienced and reputable criminal tax defense attorney to take you through the voluntary disclosure process. Only an Attorney has the Attorney-Client Privilege and Work Product Privileges that will prevent the very professional that you hire from potentially being forced to become a witness against you, especially where they prepared the returns that need to be amended, in a subsequent criminal tax audit, investigation or prosecution.

    Moreover, only an Attorney can enter you into a voluntary disclosure without engaging in the unauthorized practice of law (a crime in itself). Only an Attorney trained in Criminal Tax Defense fully understands the risks and rewards involved in voluntary disclosures and how to protect you if you do not qualify for a voluntary disclosure.

    As uniquely qualified and extensively experienced Criminal Tax Defense Tax Attorneys, KovelCPAs, and EAs, our firm provides a one-stop shop to efficiently achieve the optimal and predictable results that simultaneously protect your liberty and your net worth. See our Testimonials to see what our clients have to say about us!

    We Are Here for You

    Regardless of your business or estate needs, the professionals at the Tax Law Offices of David W. Klasing are here for you. We are open for business, and our team will help ensure that your business is too. Contact the Law Offices of David W. Klasing today to discuss your business with one of our professionals.

    In addition to our fully staffed main office in downtown Irvine California, the Tax Law Offices of David W. Klasing has unstaffed (conference room only) California-based satellite offices in Los Angeles, San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland, CarlsbadSacramento. We also have unstaffed (conference room only) satellite offices in Las Vegas Nevada, Salt Lake City Utah, Phoenix Arizona & Albuquerque New Mexico, Austin Texas, Washington DC, Miami Florida, and New York that solely handle Federal & California Tax issues.

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