On behalf of The Marks Law Firm, L.L.C. posted in Fraud on Tuesday, November 29, 2011
One Missouri man was recently sentenced to more than five years in federal prison for fraud.
Last March, the 40-year-old man from Springfield pleaded guilty to tax evasion and to structuring financial transactions in order to evade federal tax reporting requirements. According to the court documents, he defrauded a woman out of more than $500,000.
In addition to the prison sentence, the judge ordered the man to pay over $530,000 in restitution to the woman who was involved in the scheme.
According to authorities, the man lied to the woman about a planned business opportunity. The man claimed his tree-trimming and debris-cleaning business would be working under FEMA disaster relief contracts. The money was to be used for machinery and salaries. In the end, the man said the two would split the profits. Unfortunately, there were no contracts and the business opportunity did not exist.
Over time the man apparently showed her fraudulent documents meant to verify his business expenses. At one point he gave her $25,000 of her own money, telling her that it was some of the promised profits.
Banks must report transactions that are greater than $10,000 to the government. To avoid that, the man completed transactions below $10,000. The man also did not report the income he received from the woman in 2007 and 2008 when he should have paid the government close to $150,000 in taxes.
In something of a twist, the man’s public defender sent the judge a memo stating that the Missouri man was addicted to drugs during the time the fraud was taking place. Because of the drug use, the attorney asked that the man be incarcerated in a federal prison that offers a drug treatment program.
Source: KY3, “Drug addict from Springfield goes to prison for defrauding woman of $500000+,” Nov. 10, 2011