Recently, we have brought you stories about several individuals that have been charged with crimes relating to their roles in helping Americans avoid paying taxes and therefore defrauding the Internal Revenue Service. Those indicted have been both Americans and foreigners, young and old, rich and poor. Yesterday, the Department of Justice charged a southern California banker for similar acts. But unlike the others charged over the past few years for tax fraud, this arrest could mean the end of the line for you, too.
Shokrollah Baravarian, a banker at the Los Angeles branch of a large financial institution based in Tel Aviv, Israel was charged with conspiring to defraud the United States. According to a press release by the Department of Justice, Baravarian assisted U.S. customers in setting up accounts in Israel using pseudonyms, code names or nominee entities to avoid detection by the IRS. Court documents allege that the sham entities set up by as part of the scheme were located in the British Virgin Islands and the Island of Nevis.
In addition to setting up and maintaining the accounts, Baravarian is also accused of setting up a transaction that would allow the U.S. holders of the Israeli accounts to cash out some of their undeclared earnings back home in the United States. A “back-to-back” loan structure was established that allowed U.S. citizens with money in Israel to “borrow” money from the domestic branches in the United States with the undeclared assets back in Israel serving as the collateral. The indictment alleges that any documentation of these transactions was not kept at the branch in Los Angeles to ensure that there would be no proof that the scheme existed.
The charges brought against Baravarian are a reminder that the government isn’t just cracking down on tax evasion in Switzerland and the Caribbean, but rather all over the world. But what is more troubling about this story is how close to home that it hits. It is certainly possible that you may have worked, either directly or indirectly with Baravarian or the bank that he associates with. If that’s the case, you really only have two options. One, do nothing and wait for the IRS and Department of Justice to find you out and file charges against you. Or two, contact us right away. At this point, there may be some hope left for you. But the longer that you wait, the smaller the chances of you walking away from this with your freedom become.
At the Tax Law Offices of David W. Klasing, we have experience in dealing with the IRS and Department of Justice in criminal investigations. We can help you take the right steps to minimize the damage that this may cause you and your family. If you don’t act now, and the government finds out about your undeclared assets, you can no longer voluntarily disclose them and avoid jail time. Remember, we can only help you if you reach out to us. Don’t be another statistic; contact us today.