Category Archives: Tax Fraud

Crime Log: Nursing Homes Pay Well…

Posted on February 11, 2006 by Russ

…when you withhold taxes from employees and keep them. Crime does pay, as long until you get caught. Take nursing home owner Jack Easterday, formerly of Alameda, CA, and soon to be residing in a federal penitentiary. Mr. Easterday was … Continue reading →

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The Saga of Western Tax Service Draws to a Close

Posted on February 9, 2006 by Russ

Samuel Joseph DeAngelo headed Western Tax Service. It attracted tax clients quickly as it averaged $2,500 refunds for each customer. It’s techniques were certainly interesting, and come from the Richard Hatch School of Tax Preparers: – Making up false deductions … Continue reading →

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The 2005 Tax Offender of the Year

Posted on December 31, 2005 by Russ

Boy, what a year. And what choices we have in naming our 2005 Offender of the Year. The nominees include, – Richard Hatch, who had over 300 million witnesses to winning $1 million on Survivor, but didn’t include the winnings … Continue reading →

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Money Machine Undone

Posted on December 4, 2005 by Russ

Wade Cook, author of books such as Wall Street Money Machine was indicted on eight counts of tax fraud, obstruction of justice and conspiracy. Cook, and his wife (who was also charged), created a phony tax exempt entity but allegedly … Continue reading →

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Lingerie Madam Gets Year for Tax Fraud

Posted on October 22, 2005 by Russ

The alleged Palos Park Madam (of suburban Chicago) successfully dodged prostitution charges. But she was less successful in avoiding tax fraud charges and will soon spend a year in jail. Dawn Hansel had been accused in the past of everything … Continue reading →

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Bowling for Dollars

Posted on October 5, 2005 by Russ

I remember watching the television show Bowling for Dollars. Chick Hearn, the late Los Angeles Lakers broadcaster, was the host. Contestants bowled a couple of frames and got paid small cash prizes based on how well they did. Charles Lanza, … Continue reading →

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Offshore Shenanigans

Posted on September 30, 2005 by Russ

A company called Derivium Capital LLC is under investigation by the IRS and the Franchise Tax Board for making loans that allegedly weren’t loans, according to Forbes. The scheme aided taxpayers who were sitting on large stock gains. According to … Continue reading →

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You Too Can Live Tax Free…

Posted on June 7, 2005 by Russ

…in jail. After having been gone for just under a week, I must thank Roth Tax Updates for the first of a few gems. It seems that Lynne Meredith received 121 months (10 years and a month) for conspiring to … Continue reading →

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“I Haven’t Done Any Drugs or Alcohol in Eight Months.”

Posted on June 1, 2005 by Russ

Ok, what does that have to do with tax? That’s what I was thinking when I read this article (one-time registration required). Restaurateur Neil Stein plead guilty yesterday to federal tax fraud charges and will likely receive a term of … Continue reading →

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The IRS Can Tell The Difference Between $14,885 and $200,000

Posted on April 24, 2005 by Russ

Suppose you’re in court testifying in a civil case. You’re asked what your income is. You tell the truth (of course, you’re under oath) that you make $200,000. No problem, right? Unless your tax return says you made $14,885. And … Continue reading →

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