MCAs, Sky-High Interest Payments, Cash Advances & a Businessman Sentenced for Credit Card Processing Fraud & Tax Evasion

Sean was sentenced to 33 months in prison, three years of supervised release and ordered to pay $85,000 in restitution to victims of a credit card processing fraud scheme as well as $757,000 in restitution to the Internal Revenue Service. Mecham previously pleaded guilty to conspiracy to commit wire fraud and willful failure to collect or pay over taxes. Several of Mecham’s family members, as well as one of Mecham’s employees, also previously pleaded guilty to related charges. Mecham served as the CEO of a Mesa-based company that provided credit card processing services. Mecham, and others acting at his direction, intentionally concealed or misrepresented the lease terms for credit card pin-pad machines that were sold to customers. Mecham also directed employees to forge customer signatures on lease contracts and to alter documents. Mecham and his wife also engaged in a separate scheme to withhold and misappropriate employee payroll taxes that should have been remitted to the IRS. Mecham used employee withholdings to sustain a lavish lifestyle which included the purchase of a Maserati, expensive off-road racing vehicles, travel and other expensive personal items.

Serious Tax Problems Deserve Serious Attention Selig & Associates provides the most aggressive tax representation allowed by law. We specialize in unpaid income, sales and payroll taxes.  We settle contested tax audits; negotiate excellent payment plans, compromise tax debts and resolve all civil and criminal tax issues, including suspended New York State Drivers Licenses. To schedule a Free Consultation call (212) 974-3435. 

New York City Tax Accountant and Tax Attorney Our New York City offices are conveniently located and easily accessible by car, train and subway. Civil and criminal tax consultations are confidential and legally privileged. Same day and emergency appointments are scheduled Monday through Thursday between the hours of 9:00 a.m. and 5:00 p.m. and on Fridays between 9:00 a.m. and 3:00 p.m. 

We Represent Restaurants, Nightclubs, Pizzerias and Cafés We negotiate excellent installment agreements and provide restaurant and business owners with effective sales tax and audit representation, including unfiled tax returns and Department of Labor issues. For a no-obligation consultation call us directly at (212) 974-3435 or contact us Online.

We Represent Businesses, Contractors and Medical Practices We solve difficult payroll tax problems. We negotiate affordable repayment plans with the IRS and State. Civil and criminal tax representation also includes: audits, examinations, bank levies, tax liens, compliance checks, missing tax returns and Workers Compensation issues. For immediate assistance call (212) 974-3435 or contact us Online. 

Commercial Insurance Consulting We assist builders, businesses, nightclubs, schools and religious institutions with their specialty insurance needs, including: Environmental Issues; Active Shooter and Workplace Violence Protection; Cyber Insurance, Sexual Harassment and Employment Practices Liability Insurance. For more information call us directly at (212) 974-3435. 

Insurance Settlements We settle property damage claims, including business interruption, burglary, fire, windstorm and water damage. To discuss your insurance claim with a Public Adjuster and Attorney call (212) 974-3435. Appointments are scheduled Monday through Thursday between the hours of 9:00 a.m. and 5:00 p.m. and on Fridays between 9:00 a.m. and 3:00 p.m. 

Attorney & IRS Employee Convicted of Tax Evasion (NEED TAX HELP? CALL SELIG & ASSOCIATES)

A federal jury in Las Vegas, Nevada, yesterday convicted Craig P. Orrock, a former attorney and former Internal Revenue Service (IRS) employee, of tax evasion and obstructing the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Nicholas A. Trutanich for the District of Nevada, and Special Agent in Charge Tara Sullivan of IRS-Criminal Investigation.

According to court documents and evidence presented at trial, starting in the early 1990s, Orrock, currently of Sandy, Utah, evaded the payment of his federal income taxes and obstructed IRS efforts to collect those taxes. Orrock filed federal individual income tax returns for the years 1993 through 2015, but failed to pay the income taxes reported as due. He attempted to prevent the IRS from collecting the reported income taxes through the use of nominee entities, bank accounts and trusts to hide his income and assets from IRS collection officers. Orrock attempted to evade the assessment of a large part of the income tax he owed for 2007, by concealing from the IRS both the ownership of real estate he held through a nominee known as Arville Properties LLC as well as the proceeds from the sale of the property. 

From 1993 through 2015, Orrock evaded the payment of over $500,000 in federal income taxes.

Orrock faces up to five years in prison on each of the first two counts and up to three years in prison on the third count, as well as a period of supervised release, restitution and monetary penalties. Sentencing is scheduled for Aug. 26.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Patrick Burns and Tax Division Trial Attorney Erin S. Mellen, who are prosecuting the case.

Tax Evasion Any person who willfully attempts in any manner to evade or defeat any tax imposed by this title or the payment thereof shall, in addition to other penalties provided by law, be guilty of a felony and, upon conviction thereof, shall be fined not more than $100,000 ($500,000 in the case of a corporation) imprisoned not more than 5 years or both, together with the costs of prosecution. 26 U.S. Code Section 7201. For immediate assistance with this or any other tax matter call (212) 974-3435 or contact us Online.  

Suspended NYS Drivers License If your drivers license has been suspended for unpaid taxes, we can help. New York State can suspend your drivers license if you owe $10,000 or more in taxes, penalties and interest. See: New York Tax Law Section 171-v. 

Failure to File Tax Returns  If you haven’t filed a tax return for one or more years, we can help. FYI Under federal law failure to file a tax return is usually treated as a misdemeanor, IRC §7203. However in more egregious cases, willful failure to file a tax return may be elevated to a felony, IRC §7201. Additionally, under New York State Tax Law Section 1801(a)(1) willful failure to file a tax return may now be prosecuted as a felony.  For immediate assistance call us directly at (212) 974-3435. 

Tax Preparer Indicted for Preparing False Tax Returns and Identity Theft

A Gaithersburg, Maryland, woman had her initial appearance today on an indictment charging her with ten counts of aiding or assisting in the preparation of false or fraudulent tax returns, one count of mail fraud, and one count of aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Robert K. Hur of the District of Maryland. 

“The Department of Justice will prosecute fraudulent tax return preparers and protect honest taxpayers whose identities are ensnared in tax return schemes,” said Principal Deputy Assistant Attorney General Zuckerman.

“While most tax return preparers provide excellent service to their clients, unscrupulous return preparers give the industry a black eye. IRS-CI works year round to investigate deceitful return preparers and to protect the American taxpayers’ money and personal identification information,” said Kelly R. Jackson, Special Agent in Charge, IRS Criminal Investigation, Washington, D.C. Field Office.

According to the indictment, Maria Espinal owned and operated a tax return preparation business located in Gaithersburg, Maryland.  From at least 2012 through 2016, Espinal allegedly prepared and filed fraudulent tax returns on behalf of her taxpayer-clients with both the IRS and the Comptroller of Maryland.  To generate a refund to which the client was not entitled, Espinal is alleged to have manipulated and altered Forms W-2 in the names of third parties, without their permission or authority, by replacing the listed employee’s name with Espinal’s client’s name. She would then report the third party’s wages and withholdings as those of her own clients in order to generate a fraudulent federal and state tax refund.

If convicted, Espinal faces a maximum sentence of three years in prison for each count of aiding and assisting in the filing of false returns, 20 years in prison on each count of mail fraud, and a statutory minimum sentence of two years in prison for aggravated identity theft.  Espinal also faces potential fines, restitution, and forfeiture. 

An indictment is not a finding of guilt. Individuals charged in indictments are presumed innocent until proven guilty beyond a reasonable doubt.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Hur thanked Trial Attorney Carl F. Brooker, IV of the Tax Division and Assistant United States Attorney Ray McKenzie, who are prosecuting the case.

Free Consultation We Solve Tax, Business and Insurance Problems. To speak with an experienced Federal Tax Practitioner and Attorney call (212) 974-3435 or contact us online. Don't delay another day. Meet with us personally in our conveniently located New York City office. 

Restaurants We specialize in unpaid sales taxes, installment agreements, audit representation and all Department of Labor issues. For immediate assistance call (212) 974-3435 or contact us online. 

Contractors We specialize in payroll and withholding taxes, installment agreements, audit representation and Workers Compensation insurance audits. To schedule a free consultation call (212) 974-3435 or contact us online. 

Couple Indicted for Conspiracy to Defraud the IRS and Filing False Tax Returns

A federal grand jury returned an indictment yesterday charging a husband and wife with conspiring to defraud the Internal Revenue Service (IRS) and multiple counts of filing false tax returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and United States Attorney. 

According to the indictment, Robert and Donna Poimboeuf owned and operated D&G Holdings LLC (D&G), a company providing laboratory and mobile phlebotomy services.  For the 2011 through 2015 tax years, the Poimboeufs allegedly underreported their income and gross receipts from D&G on their joint personal federal income tax returns by submitting false information to two separate tax return preparers that omitted bank accounts and Forms 1099 that the accountants needed to accurately report their taxable income.  The indictment charges that the Poimboeufs also improperly classified business receipts as non-taxable loan proceeds in an effort to reduce their income. 

If convicted, Robert and Donna Poimboeuf each face a maximum sentence of five years in prison on the conspiracy counts and three years in prison on each false return count.  The Poimboeufs also face a period of supervised release and monetary penalties.  An indictment is an accusation.  A defendant is presumed innocent unless and until proven guilty.

IRS-Criminal Investigation investigated the case. First Assistant U.S. Attorney Alexander Van Hook and Trial Attorney Kevin Schneider of the Tax Division are prosecuting the case.

We Solve Tax Problems

Call (212) 974-3435 for a Free Legally Privileged Tax Consultation. Same day and emergency appointments. Meet personally with a Federal Tax Practitioner and Attorney in our New York City office.  

✔ Civil and criminal tax representation, including unpaid income, sales and payroll taxes. 

✔ Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔ We negotiate excellent re-payment plans with the IRS and State. Offers in compromise, audits, bank levies and wage garnishments. Suspended passports, suspended drivers licenses and most other tax matters. Debt settlement, including business financing, merchant funding, lines of credit and factoring.  

Another Amazing Article by Jessica Karmasek: Boston financing company accuses debt elimination companies of swindling merchants

BOSTON (Legal Newsline) - A fast-growing small business financing company in Boston has filed a federal lawsuit against two debt elimination companies, alleging they are scamming merchants and commercial businesses and, in turn, have damaged the plaintiff company.

Forward Financing LLC filed its lawsuit in the U.S. District Court for the District of Massachusetts Nov. 28.

The named defendants are Mark D. Guidubaldi & Associates LLC d/b/a Protection Legal Group LLC and Corporate Bailout LLC. Protection Legal Group is based in Schaumburg, Illinois, while Corporate Bailout is based in Somerville, New Jersey.

“In recent years, fraudulent debt elimination and debt settlement schemes have flourished throughout the United States. Promoters of these schemes generally claim that, for an up-front fee, they will eliminate or substantially reduce a party’s debts or other obligations to creditors,” Forward Financing explained in its 13-page complaint. “However, these schemes have no valid basis in law or in fact, and they fail to provide any of the promised relief to consumers or other entities unwittingly enlisted into such schemes.”

The Treasury Department’s Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have warned consumers about such schemes, and several state attorneys general have brought civil actions.

As Forward Financing points out, the Massachusetts Attorney General’s Office is among those that have published warnings about such debt elimination schemes.

“Defendants PLG and Corporate Bailout have carried out their own version of this scheme, aimed not at consumers but at merchants and other commercial businesses,” the company alleges.

According to Forward Financing’s complaint, the defendants scour public records, among other methods, to identify and solicit merchants and other commercial entities to enroll in their debt restructuring programs, promising to reduce the merchants’ debts or other financial obligations.

“In fact, the Defendants’ ‘programs’ are shams, empty promises with no basis in law or fact designed not to assist these merchants but to exploit the merchants’ vulnerabilities and take their money for the Defendants’ own benefit -- at the expense of the merchants’ creditors and business associates,” Forward Financing alleges.

The plaintiff alleges it has fallen victim to the two companies’ fraudulent scheme.

According to its complaint, Forward Financing is a company that provides working capital to merchant businesses in exchange for an interest in a designated portion of the merchants’ future accounts and receivables.

A transaction arising from a Future Receipts Sales Agreement -- in which a merchant agrees to sell a certain amount of its future receipts to a company, like the plaintiff, for an immediate cash payment -- is not considered a loan.

Because of this, many merchants entering into such an agreement agree not to enter into any agreement with a third party that offers debt restructuring services, debt settlement services, debt management services, debt balance reduction services, creditor reduction services, creditor negotiation services, financial mitigation services or similar services, Forward Financing noted.

In addition, the company said it must be notified when a merchant receives such a solicitation.

Forward Financing alleges that “several” merchants have recently stopped making payments to it from the future receipts pursuant to their contracts at the direction of the defendant companies.

Among those contracts PLG and Corporate Bailout have allegedly interfered with: Port City Logistics Inc., of Oswego, New York; BW CPA Group Inc., of Los Angeles; J&J Pool and Beach Services Inc., of Pembroke Pines, Florida; Troupe Eyecare LLC, of Fort Worth, Texas; Scarpinato’s Cucina & Catering, of Blackwood, New Jersey; and Courageous Journeys Counseling Services PC, of Yuma, Arizona.

“Each of these merchants received cash advances from Plaintiff in amounts ranging from $10,000 to $100,000, and subsequently ceased making payments to Plaintiff within 90 days of receiving the cash advances -- and after being solicited to enroll in a Defendant’s ‘Debt Restructure Program,’” Forward Financing alleges.

The company continued, “The Defendants promised these merchants that they could erase their debts and otherwise alleviate their financial problems by convincing creditors -- or, in the case of Plaintiff, purchasers of receivables -- to accept a significantly reduced amount as payment in full for their clients’ debts or financial obligations, irrespective of the fact that the Defendants’ actions and the merchants they purportedly advise have no legal basis.”

For their services, the defendant companies receive fees of 25 percent or more of the debts or other obligations placed in their programs, plus a monthly retainer fee and administration fees, according to the Forward Financing complaint.

“As a result of the Defendants’ misconduct, the merchants have received nothing of value -- and Plaintiff has been injured,” the company wrote.

Forward Financing is seeking permanent injunctive relief against the defendants; damages against the companies in excess of $75,000; double or treble damages; attorneys’ fees and costs; and interest award.

Boston law firm Combies Hanson and Miami firm Coffey Burlington PL are representing the plaintiff company.

According to the docket, District Judge Leo T. Sorokin has been assigned to the case.

Protection Legal Group, according to its website, was founded “with the singular goal of helping businesses survive complex financial situations intact.”

Corporate Bailout, on its website, states it works “tirelessly to help companies resolve their fiscal obligations without resorting to extreme measures.”

“Instead of leaving the potential business leaders of tomorrow resigned to options like bankruptcy, we give them hope by identifying clearer paths to effective resolution. By dealing with creditors, suppliers and stakeholders on your behalf, we make it easier to lower your monthly payments and come out of debt stronger than you were when you entered it,” its website states.

Neither Protection Legal Group nor Corporate Bailout could be immediately reached for comment on the lawsuit.

From Legal Newsline: Reach Jessica Karmasek by email at jessica@legalnewsline.com.

Can’t Re-Pay Your MCA? – Then Call Me Today (212) 974-3435

Can’t re-pay your MCA? Give me a call today (212) 974-3435. 

We may be able to settle your Merchant Cash Advance for less 

and get you new financing to re-pay your debt. 

Call (212) 974-3435 for a Free Legally Privileged Tax Consultation. Same day and emergency appointments. Meet personally with a Federal Tax Practitioner and Attorney in our New York City office.  

✔ Missing tax returns prepared and filed within 48 hours, guaranteed. 

✔ We negotiate excellent re-payment plans with the IRS and State. Offers in compromise, audits, bank levies and wage garnishments. Suspended passports, suspended drivers licenses and most other tax matters. Debt settlement, including business financing, merchant funding, lines of credit and factoring.