On behalf of The Marks Law Firm, L.L.C. posted in Federal Crimes on Thursday, April 26, 2012
A St. Louis man recently pleaded guilty to violating federal tax laws. Federal tax evasion is a violation offederal criminal law. The man claims that he conspired to commit wire and mail fraud and also filed a false tax return.
The St. Louis man, a co-founder of Fidelis, admits that on his 2006 tax return he did not declare $13 million in “distributions” he received from Fidelis. In addition, in that same year, he reported a negative income on his tax return.
The man and his brother ran the Fidelis business. It is alleged that the two brothers falsely represented Fidelis auto contracts as extended warranties offered by the manufacturer. Over 60 percent of their customers asked for refunds and the two Fidelis co-founders allegedly directed employees to return only 60 percent of the amount due.
It is also alleged that the men used these funds to purchase homes and other luxury goods.
If convicted, the man could face eight to ten years in prison. Sentencing has been scheduled for July.
In addition to prison sentences, federal tax evasion can also result in monetary fines. The amount of the fines will vary depending on the severity of the crime. However, those fines could be significant and reach as high as hundreds of thousands to millions of dollars.
In a serious case such as this one, it is often beneficial to seek the assistance of a criminal defense attorney. When an individual is facing not only potential prison sentences but also drastically high monetary fines, it is important to have an experienced advisor to negotiate terms and mitigate the potential consequences.
Source: STL Today, “US Fidelis co-founder admits federal tax evasion, fraud,” Robert Patrick, April 10, 2012