Phony Notes but Real Evasion

If you’re ever accused of a criminal offense, and you’re under bond (bail), you should show up at your trial. If you don’t, you are certain to find yourself in even worse trouble. Add in allegedly committing tax evasion and making up your own US debt instruments and your trouble is likely to multiply. Such is the case for two Ohio dentists.

Of course, we should start at the beginning. Dr. Bruce Mrusek of Maineville, Ohio and Dr. Bradley Brennecke of Pleasant Plain, Ohio were audited in 2004. The results of that audit aren’t available, but a criminal probe opened following the audit. That in itself says all we need to know.

The problems of the dentists were deep. First, the dentists allegedly transferred assets into their wives’ names to hide them from the IRS. They then allegedly sent phony documents to the IRS to pay their 2002 – 2004 taxes. Now, they didn’t send $1,000, or $10,000, or even $100,000 or $1 million in fake payments.

They allegedly each sent over $19 billion in phony payments. According to a Department of Justice press release, the documents were labeled as “‘Secured Promissory Notes’ to the U.S. Department of the Treasury as purported payment of their tax debts.” They then asked for $9.6 billion of refunds. That takes chutzpah.

Unfortunately for the dentists, the IRS and Department of Justice lack much of a sense of humor regarding payments of fake money. They were indicted on tax evasion, conspiracy to defraud the IRS, and passing fictitious instruments. Dr. Mrusek was also accused of filing false business tax returns. They were released on bond, with the trial set to start on Monday.

But the dentists didn’t show up for their trial. The US Marshals office had no trouble finding the dentists, and they were arrested. They found their way to court today.

The dentists face very lengthy prison terms if found guilty, fines in the millions, and restitution.

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