The last few days have seen a few interesting stories of fraud and deceit in the tax world. We begin in the heart of Texas, travel to the East Coast, and end up with two stories that have a California connection.
Carl Herrera is a former NBA player with Houston, San Antonio, Vancouver (now Memphis), and Denver. He has also been a member of the Venezuelan National Team. His next gig may be with the ClubFed team; he surrendered to federal authorities last week after being indicted on charges of not paying $554,471 in taxes between 1994 and 1997.
Remember our story on Joe Mammana, the Yardley, PA philanthropist accused of not paying tax on over $4 million? The Associated Press reports that he will admit to the tax fraud in a plea deal next week.
The Fresno Bee has a story this past week about the IRS making some changes in the whistle-blower program. The tip program now offers rewards of up to 30% of what’s recovered.
And finally, a story that’s not really about taxes. But it’s too good to pass up. From the AP headline: “Alleged California madam threatens to sell list of D.C. clients.” Deborah Palfrey of Vallejo (north of San Francisco) was indicted last week in Washington for allegedly running a prostitution ring. Her service has, according to the government, employed 132 ladies and generated $2 million in income. Her attorney says it’s a legal escort service; the prosecution charges that it’s racketeering. She’s accused on RICO charges and money laundering. Her attorney notes that Ms. Palfrey only has one asset left to sell to fund her defense: her customer list. I wonder if anyone in D.C. is sweating right now?