At the Tax Law Office of David W. Klasing, we frequently write about individuals who are charged with, convicted of, and sentenced for tax crimes – but seldom are those individuals already imprisoned for prior financial offenses. In this article, our tax defense lawyers cover precisely such a case. Earlier this month, the United States Department of Justice (DOJ) announced that 51-year-old inmate Casey Padula, a Florida businessman previously sentenced for felony bank and tax fraud, “pleaded guilty… to making false statements on a [DOJ] financial disclosure statement,” concealing from government officials cash, luxury vehicles, and other assets valued at more than half a million dollars. Padula’s original sentence – already an imposing 57 months, which is nearly five years – could now be doubled in length. This case should remind taxpayers that, whether they act from their homes, their businesses, or the confines of a correctional facility, any willful efforts they make to conceal income or assets will be discovered – and penalized.
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If Padula’s name sounds vaguely familiar, it may be because you have heard his story before – possibly here on our tax blog. We first covered his case in March 2017, when Padula, as noted in a DOJ press release, admitted to conspiring to commit bank and tax fraud by concealing more than $2.5 million in undisclosed foreign accounts; specifically, “secret offshore bank accounts and shell companies” located in the Central American nation of Belize, a well-known tax haven. At the time, Padula, as a condition of his deal with prosecutors, “agreed to pay restitution in the amount of $728,609 to the IRS and to BoA in the amount of $728,609.” (Here, “BoA” refers to Bank of America – a lender with which Padula “had a mortgage… of approximately $1.5 million.”)
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Revisiting the case several months later, we provided updated coverage in July 2017, when Padula was sentenced to 57 months in federal prison. The Chief of the IRS Criminal Investigation Division (IRS-CI), Don Fort – who, incidentally, was appointed to that position just one month before Padula was sentenced – had a stern warning for taxpayers, stating, “As Mr. Padula has learned… The use of sophisticated international financial transactions does not prevent IRS-CI from following the trail of money back to the person breaking the law. In conjunction with our law enforcement partners,” he continued, “we will continue our ongoing efforts to pursue individuals who use these offshore schemes to circumvent the law.”
Since then, the IRS has continued to make good on Fort’s promise, unveiling various enforcement initiatives targeting offshore tax evasion. Padula’s story has also progressed, turning now to a new set of criminal charges arising from “false statements on a financial disclosure statement he was required to submit to the government after pleading guilty to tax and bank fraud,” according to the DOJ. Among the assets Padula concealed from the government on his disclosure statement were “a boat valued at almost $340,000, at least $80,000 in cash, and a $90,000 Mercedes he had recently purchased for his daughter.”
For the new offense, to which he pleaded guilty this October, Padula faces a term of up to five years in prison – which, if imposed, could effectively double his current sentence.
Conspiring to commit bank fraud or tax fraud is an extremely serious criminal offense. So is lying to the government about your assets or income – particularly while incarcerated for a related financial offense.
No matter why you are facing criminal tax allegations, it is in your best interests to consult with a skilled and seasoned attorney. At the Tax Law Office of David W. Klasing, we are tax evasion defense attorneys who bring more than 20 years of experience to each case we handle, whether we are attempting to avoid the imposition of criminal tax charges in a state or federal criminal tax investigation, representing taxpayers in IRS appeals, Tax Litigation or working to minimize criminal tax exposure during an IRS audit. If you have concerns about a civil or potentially criminal tax compliance issue, contact our office immediately for 24-hour tax and legal support. To set up a reduced-rate consultation, call the Tax Law Office of David W. Klasing at (800) 681-1295, or contact us online today.
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Also, we’ve expanded our offices! In addition to our offices in Irvine and Los Angeles, the Tax Law Offices of David W. Klasing now have offices San Bernardino, Santa Barbara, Panorama City, Oxnard, San Diego, Bakersfield, San Jose, San Francisco, Oakland and Sacramento.
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