The tax evaders were out in force this week. I could have filled several posts with their escapades. Here are the lowlights.
Let’s start with a Bozo tax preparer. First, from Upper Darby, Pennsylvania comes the story of Nyon Geleh-Saylee. Mr. Geleh-Saylee truly wanted to help his tax preparation clients. He did this by inflating the deductions on their returns costing the federal government over $89,000. He was convicted back in June for filing false tax returns. He avoided ClubFed and will spend six months in home confinement.
Todd Newman is a CPA in Yonkers, New York. Mr. Newman was arraigned on Friday on charges of grand larceny and failure to file a state income tax return. Mr. Newman allegedly stole $1.6 million from one of his clients. He was supposed to send the money to New York state for payroll taxes withheld; instead, he allegedly wrote checks to himself. He’s looking at a lengthy term in state prison if convicted.
Here’s a scheme that sounds intriguing. Let’s start a banking system to cater to the tax protester movement. We’ll hide their money, give them access so they can print money orders when the need to, and we’ll ignore those pesky banking and tax laws. Other than violating a few federal statutes (and possibly some state laws) it’s sounds kosher, right? Well, the man who thought up this idea will likely get some time to consider it at ClubFed. Wayne Hicks, Sr. of Berryville, Arkansas pleaded guilty to one count of tax fraud conspiracy this past week. Mr. Hicks also admitted that he’s neglected to file his own tax return for the last sixteen years.
Finally, a follow-up on the story of Kevin Morse of Austin, Minnesota. Mr. Morse was sentenced this past week to 30 months at ClubFed. Mr. Morse was told by his accountant that he owed about $100,000 in back taxes but chose to use a tax protester argument to avoid the taxes. The good news is that the promoters of the scheme that Mr. Morse used are awaiting trial in Oregon.
Remember, if it sounds too good to be true it probably is.