When most of those who commit crimes successfully get away with a heist, scheme, or other illegal activity, they believe that the crime has ceased and are happy to have not been caught. But many fail to realize the tax implications of unjustly enriching themselves. In other situations, those that have engaged in unjust behavior fail to appreciate the risk of the prior criminal activity being discovered during a routine tax examination.
According to a press release by the Department of Justice, Timothy J. Beverley, 61, was convicted of wire and tax fraud by a federal jury sitting in Miami, Florida this week. According to court documents, Beverly, a Florida resident, worked at Majestic Jets, Inc., a Pompano Beach company specializing in the sale of private jets. While at Majestic Jets, Beverly was found to have directed escrow personnel to wire portions of plane sale proceeds into several nominee bank accounts that he controlled instead of directing the funds to Majestic Jets’ business bank account.
Additionally, Beverly stole money directly from Majestic Jets’ business accounts and used the funds to pay for personal expenses including those relating to a personal watercraft. Beverly failed to report any of the income that he illegally obtained on his federal tax return, which is required by law. Interestingly enough, at the time that Beverly was stealing money from Majestic Jets, he was on supervised release relating to a 2004 money laundering conviction. As a part of his prior sentencing, Beverly was required to provide the U.S. Probation Office financial information that detailed his earnings from his employment and from other sources. Between the years at issue in the case, Beverly did not report any of the funds that he illegally obtained.
When Beverly is sentenced early next year, he will face up to 20 years in prison for the single count of wire fraud, up to three years for each of the filing of a fraudulent tax return, and up to five years for making false statements to the government (relating to his requirement to report income under his supervised release). His prior conviction for money laundering is likely to negatively play into Beverly’s current sentencing.
Mr. Beverly’s illegal behavior was not detected because of his fraudulent tax filing, but many financial crimes are uncovered when the IRS uncovers sensitive information during an examination. It is critical to know your rights as a taxpayer whenever encountering the IRS. An experienced tax attorney that is present during all critical phases of your interaction with the Service can help ensure that your rights are protected and unnecessary statements that can be used against you go unsaid.
The tax and accounting professionals at the Tax Law Offices of David W. Klasing have a plethora of experience in representing clients from all walks of life in a myriad of different tax situations. From business owners to individuals being targeted by the IRS, our clients rely on the zealous advocacy of our professional staff. Whether you are in trouble with an audit or criminal investigation, or are looking to plan your financial future with tax strategy in mind, don’t let the complexity inherent in tax keep you up at night. Contact the Tax Law Offices of David W. Klasing today for a reduced-rate consultation.
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