From Doctors to Mechanics, Business Owners Will Commit Tax Fraud

Many successful business owners start out on the right path. They pay their taxes and account for things like employment taxes and sales tax, hold that money for the government, and turn-over that money to the state or federal government when it is appropriate. However, as time passes some business owners mistake the results of their compliance for a misguided belief that no one is watching or able to detect tax and other types of fraud.

Unfortunately for these business owners, professionals, or principles who may make false tax filings, skim funds from the company to cover personal expense, or fail to report sources of income the IRS and Department of Justice is watching. These agencies will not hesitate to pursue taxpayers who have failed to satisfy any tax obligation.

Ferrari Mechanic Sentenced to federal Prison for Tax Fraud

Last April a Smith’s Creek Michigan man, Terry Myr, was found guilty by a jury of one count of attempted tax evasion and four counts of failing to file a tax return. Mr. Myr is an auto mechanic who specializes in the repair of exotic cars and classic vehicles. Mr. Myr’s ability to perform intricate and detail oriented work was apparently not limited just to cars. According to court documents, since roughly 2000, Mr. Myr was engaging in a scheme to avoid paying taxes on income. When Mr. Myr’s taxes were assessed in 2003, he was assessed an unpaid tax bill of approximately $195,000. This sum included all penalties and interested then owed by Mr. Myr.

This tax debt remained due and owing when Mr. Myr sold a rare Ferrari engine for about $610,000 in 2009. Following the sale, Mr. Myr engaged in steps intended to prevent the IRS from collecting on the tax debt.  Mr. Myr used the proceeds from the engine sale to purchase more than $350,000 in gold and silver coins. Other assets were concealed through transfers to third parties. Mr. Myr also requested his customers pay him in cash, money orders, or even with prepaid gift/debit cards.

Federal prosecutors state that this tax scheme cost the government more than $700,000 in tax revenues. For his actions Mr. Myr was sentenced to two years in prison. Following his release, he will be subject to two years of supervised release.

Doctor Faces Criminal Charges for Tax and Healthcare Fraud

A South Portland, Maine dermatologist is facing five counts of tax evasion, one count of healthcare fraud, and 52 counts of unlawfully distributing a controlled substance due to an alleged scheme where the doctor “knowingly and intentionally” prescribed controlled substances without medical justification from 2010 to 2014. The doctor, Dr. Joel A. Sabean, also allegedly took more than $3 million in medical deductions from 2008 through 2012 when he was not entitled to receive them. Finally, prosecutors charge that the doctor has more than $890,000 in unpaid income taxes that are due and owing.

Dr. Sabean currently faces a potential of five years in prison for each of the 57 counts of tax evasion and controlled substances charges. For the healthcare fraud charge, if convicted, he could be sentenced to up to ten years in prison. Furthermore, if convicted of the tax charges, Dr. Sabean would also be required to make restitution to repay the tax due and owing and to pay the interest and penalties that have accrued.  The doctor has retained legal counsel who has characterized the charges as being “completely without merit.” The dermatologist continues to practice in Maine.

Facing Criminal Tax Charges?

If you have been accused of committing serious tax crimes, you could face years in federal prison and be subject to numerous fines, penalties, and other consequences. Furthermore, if you are accused of committing a tax or other serious crime, you will be prosecuted by an experienced and aggressive prosecutor who has likely handled cases like yours.

Thankfully, you do not have to face the IRS or Department of Justice alone. The experienced and dedicated tax attorneys and CPAs of the Tax Law Offices of David W. Klasing can fight for you. We work to mitigate the situation and reduce the penalties and other consequences you may face. To schedule a reduced-rate consultation, call our firm at 800-681-1295 or contact us online today.