I’ve recovered from Tax Day, and am back at work. While I’ve been gone, there’s been a lot of fraud. That’s typical for this time of year, as the government loves letting people know that tax fraud is bad. Indeed, I probably have enough material for two uber-posts.
Let’s start off with the mob. Yes, that mob. It seems the government found that an alleged soldier in the Gambino family, Salvatore Scala, had attempted to extort money from the VIP Club in New York City. The VIP Club is an “adult entertainment” facility, but that doesn’t change that extortion is illegal. So is tax evasion, and Scala was found guilty of two counts of extortion and four of evasion. He was sentenced to six years at ClubFed. His co-defendant, Thomas Sassano, was convicted on two extortion charges.
Heading south to North Carolina, we find a tax preparer who appeared to almost guarantee a refund. Indeed, 99% of his clients got one! Lloyd Batsfield accomplished this feat by having most of his 10,000 returns from 2002-2005 have education credits claimed. The trouble was, most of the clients didn’t deserve the credits. Oops, and that became a big oops when the government knocked on his door. He pleaded guilty to filing $6 million in false claims for tax refunds. He also owes over $100,000 in back taxes to the IRS. He’s looking at an extended stay at ClubFed.
A yoga instructor in New York found out that whether or not you receive a W-2 or 1099 doesn’t change whether income is taxable. He pleaded guilty to evading $90,000 in taxes. That’s a lot of yoga instruction.
Staying in New York, pop star Marc Anthony was in the news for the wrong reasons. Three of his companies forgot to pay New York state income tax, and they pleaded guilty to the charge. The total tax owed was $3 million. Anthony escaped prosecution under a plea bargain but he’s going to have to pay $2.5 million in back taxes, penalties, and interest.
Remember the Ozbays? I’ve reported on this clan who didn’t believe in taxes before, most recently when Birol Ozbay was sentenced to 10 years and must forfeit $6.8 million. Yalcin Ozbay got an identical sentence of 10 years and $6.8 million. The story notes that just about every federal and New York law enforcement agency was involved. Given that they tried to violate every tax law they could, I’m surprised that this story didn’t get more play right before tax day.
Finally (for this uber-post), a story that’s closer to home. A Riverside (California) owner of a halfway house allegedly really liked the telephone tax refund. He’s been charged with claiming $600,000 in telephone tax refunds. Peaches Mercer Turner, according to this story, has been charged with tax fraud, identity theft, wire fraud, and obstructing an IRS investigation. Apparently Turner allegedly used some of his halfway house patrons to file the telephone tax refund claims. One such individual, Alejandro Berdin, requested a $33,000 refund. Given that he was unemployed and in a halfway house, it seems improbable that he made $1 million worth of long-distance phone calls. If convicted, Berdin (who was also charged) and Turner may make the short-distance trip to ClubFed’s Victorville facility….
Well, I’ve just scratched the surface of the deceit, fraud, and other items that have come across my desk in the last couple of weeks. I’ll have another uber-post tomorrow, as there’s plenty more tax crime.