Tax Protestor Convicted of Tax Evasion

A well-known tax protestor in the Pensacola, Fla. area has been convicted on six counts of tax evasion.

Ward F. Dean, a physician, was convicted of tax evasion for the years 1997 to 2002 and for his attempt to interfere with the administration of the Internal Revenue Code.

Evidence presented at trial established that Dean, an outspoken tax protestor, had claimed no income for the years 1997 to 2002 when, in fact, he was paid approximately $1.3 million and owed over $300,000 in taxes. A retired Navy commander, Dean received a pension and other consulting income during the six-year period.

Dean faces up to five years in prison and a $100,000 fine for each of the six felony counts on which he was convicted.

Realtor Sentenced to 18 Months for Evasion

A prominent real estate agent and broker in Bay Harbor Island, Florida, near Miami, was sentenced to 18 months in prison after pleading guilty to tax evasion.

Angelo Pizzuto was also ordered to pay restitution to the IRS in the amount of $807,240.

According to court records, Pizzuto was a real estate broker who often handled large development projects for foreign investors. Because investors came to the United States infrequently, Pizzuto was entrusted with their money to manage projects, including the hiring and paying of builders.

Beginning in approximately 1999, Pizzuto used investor funds for his personal benefit and failed to disclose these funds as income. In total, Pizzuto used more than $2 million of investors’ money to finance his own lifestyle, including the payment of rental cars, dinners, consumer goods, and even the purchase of real estate. By failing to report this income, Pizzuto failed to pay the IRS substantial taxes.

Chiropractor Guilty of Failure to File

A self-employed Springfield, Mo., chiropractor pleaded guilty to failing to file income tax returns for four years.

Stephen B. Teeple, 53, admitted that he failed to file income tax returns for the calendar years 1999 to 2002. In all, Teele failed to pay taxes on nearly $1 million in income.

The case was investigated by IRS Criminal Investigations.

N.J. Scientist Gets Home Confinement for Tax Fraud

A Princeton scientist was sentenced to 12 months of home confinement and five years of probation for defrauding the United States regarding grants and tax evasion.

Moshe Lavid, 63, agreed to pay a total of $1.4 million to the government for the tax evasion and to settle allegations that he made false certifications to the NASA and the U.S. Department of the Air Force, among other agencies, to obtain federal research grants under the Small Business Innovative Research Program.

Lavid, a Ph.D., is the owner of M.L. Energia, a Plainsboro-based company involved in scientific research. The company formerly contracted with the federal government to conduct research focusing on the interaction between photons generated by lasers or advanced light sources and matters, mostly gas and liquid.

During his guilty plea Lavid admitted failing to notify the National Science Foundation that he had inappropriately used old data produced under an earlier contract.

Lavid also pleaded guilty to one count of tax evasion, which charged him with evading more than $93,000 in income tax on his personal tax return for 1998. Lavid agreed to pay the government $288,414.04, which included penalties and interest.

Former Cop Sentenced for Tax Evasion

Kelvin Ellis, 56, of East St. Louis, Ill., was sentenced to 21 months in prison, three years of supervised release and a $3,000 fine after pleading guilty to one count of income tax evasion.

According to facts submitted at the time of the guilty plea, Ellis, a former East St. Louis cop, was employed as the Director of Regulatory Affairs for the City of East St. Louis, Ill. While employed by the City of East St. Louis, Ellis also worked as an independent consultant, advising local businesses in the area of public grants. During the years 2001, 2002 and 2003, Ellis had other sources of income as well. For the tax year 2001, Ellis failed to report income from his consulting work, along with other income. For the tax years 2002 and 2003, Ellis failed to file tax returns, even though he earned income during those years from the City of East St. Louis, his consulting work and other sources.

The successful prosecution was a result of an investigation conducted by the IRS Criminal Investigation Division, the FBI, the U.S. Postal Inspection Service Criminal Investigations and the Illinois State Police.

Family Law Attorney Pleads Guilty To Income Tax Evasion

Matthew J. Schaefer, an attorney in Coral Springs, Fla., pleaded guilty last month to one count of income tax evasion for the year 2000.

According to court records, Schaefer, an attorney specializing in family law, attempted to evade federal income taxes for the years 1999, 2000 and 2001 by failing to report all of his business receipts and by overstating expenses. In all, Schaefer failed to pay about $133,000 in taxes.

He faces up to five years and a fine of up to $250,000. As part of the plea, Schaefer has agreed to file amended income tax returns with the IRS for tax years 1999 through 2001. Additionally, he has agreed to all back taxes.

Ct. Man Charged With Making False Claims

Norwalk, Ct., has been charged with five counts related to the filing of fraudulent income tax returns and fictitious W-2 wage and tax statements for the tax years 2002 and 2003.

The indictment alleges that Dennison electronically filed two false tax returns and claimed two false tax refunds for 2002 and 2003. The total amount of false tax refunds claimed by Dennison was $206,923. If convicted, he faces up to five years in prison.

Man Pleads Guilty to Filing False Refund

Gary Davis, 53, of Avon, Ct., pleaded guilty to subscribing to a false tax return. Davis admitted that he claimed about $430,000 had been withheld from him and that a similar amount was owed to him. Davis justified this with an erroneous statement from his mortgage company, which mistakenly stated that $430,000 had been withheld from his mortgage account, rather than $4,300. He faces up to three years in prison and a $100,000 fine.