IRS Prosecutions Spike in April for Tax Fraud

Mark J. Mandell, Esq.

That start of the month may be April Fool’s Day, but there is no joking around this month for the IRS. In an attempt to flex their muscle, IRS prosecutions spike during the tax season as a not-so-gentle reminder that there can be a big price to pay for tax fraud and tax evasion.

A recent analysis by Syracuse University researchers show that the ten year average for IRS criminal prosecutions is significantly higher in April than any other month of year. Also, the month of March is the second highest month. Last year, the number of prosecutions was higher than the ten year average for most months, but especially for April.

It’s very likely that this peak is a result of the IRS’s desire to remind people and businesses of their responsibility under tax law.

Prosecutors will levy a number of criminal charges in one case, such as money laundering, mail fraud, bank fraud, etc. However, one charge must be selected as the “lead charge.” The top choices for lead charges were: (1) Fraud and false statements, and (2) conspiracy to defraud the Government claims.

Very few taxpayers – about 2% - are ever investigated for tax fraud. However, if you are under investigation, you have a 20% chance of facing criminal charges and/or a civil fines.

Whatever your case, it is important to present a zealous defense. As a former prosecutor, I have experience with the strategies the government will use against you and I know what weaknesses to look for. You don’t want to go up against the Tax Man without aggressive representation.

Are you or your business in trouble with the IRS? Give the Michigan Fraud Lawyers a call today at 248-468-4536, or visit us online at http://www.fb-firm.com/Fraud/Financial-Fraud.shtml and www.Facebook.com/FausoneBohnLLP

To learn more about the April peak in IRS Criminal Prosecutions, see Bloomberg Business News’s recent article: http://www.bloomberg.com/news/articles/2015-04-02/april-is-the-cruelest-month-for-prosecuting-tax-fraud 

Man Pleads Guilty to Mail Fraud Totaling $2.6 million

Mark Mandell, Esq

While we may not often think of inmates as vulnerable, it is upon these individuals that John Wilson preyed, conning both the inmates and their families out of $2.6 million.

It has been two years since Wilson was accused, but he has finally pled guilty to fraud. Wilson worked with Lari Zeka, a Macomb Township man, running three businesses that sent mailings to inmates across the nation. The mailings, which targeted both the inmates and their families, presented an offer of legal services on the inmate’s behalf. The catch, however, was the necessity of payment upfront, money that would supposedly be used for legal research and lawyer retainer fees. The research would help toward the inmate’s appeal, while the retainer fee would be put toward the case. Once fees were paid, however, the money disappeared. No research was conducted and no attorney was ever assigned to work on the inmate’s appeal.

Wilson seemed to target both black and Hispanic inmates specifically; however, the nature of the scheme was universal in nature. The mailings preyed upon the desperate desire of family members to help their loved ones behind bars.

As a result of an investigation by the Internal Revenue Service and the U.S. Postal Inspection Service, Wilson was indicted on 66 counts of mail fraud in October 2010 and finally pleaded guilty in January. For now, he awaits sentencing.

To learn more and read the original article, please visit: http://www.detroitnews.com/article/20121211/METRO/212110435/1409/rss36