Michael “The Situation” Sorrentino and His Brother, Marc Sorrentino, Plead Guilty to Tax Crimes: He should have hired SELIG & Associates

Reality television personality Michael “The Situation” Sorrentino and his brother, Marc Sorrentino, pleaded guilty today to violating federal tax laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division, U.S. Attorney Craig Carpenito for the District of New Jersey and Internal Revenue Service Criminal Investigation (IRS CI) Special Agent in Charge Jonathan D. Larsen.

According to documents and information provided to the court, Michael Sorrentino, 36, pleaded guilty to one count of tax evasion and Marc Sorrentino, 38, pleaded guilty to one count of aiding in the preparation of a fraudulent tax return. 

“Today’s pleas are a reminder to all individuals to comply with the tax laws, file honest and accurate returns and pay their fair share,” said Principal Deputy Assistant Attorney General Zuckerman. “The Tax Division is committed to continuing to work with the IRS to prosecute those who seek to cheat the system, while honest hardworking taxpayers play by the rules.” 

“What the defendants admitted to today, quite simply, is tantamount to stealing money from their fellow taxpayers,” said U.S. Attorney Carpenito. “All of us are required by law to pay our fair share of taxes. Celebrity status does not provide a free pass from this obligation.”

 “As we approach this year’s filing season, today’s guilty pleas should serve as a stark reminder to those who would attempt to defraud our nation’s tax system,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office.  “No matter what your stature is in our society, everyone is expected to play by the rules, and those who do not will be held accountable and brought to justice.”

Michael Sorrentino was a reality television personality who gained fame on “The Jersey Shore,” which first appeared on the MTV network.  According to documents and information provided to the court, he and his brother, Marc, created businesses, such as MPS Entertainment LLC and Situation Nation Inc., to take advantage of Michael’s celebrity status.  

Michael Sorrentino admitted that in tax year 2011, he earned taxable income, including some that was paid in cash, and that he concealed a portion of his income to evade paying the full amount of taxes he owed.  He also made cash deposits into bank accounts in amounts less than $10,000, in an effort to ensure that these deposits would not come to the attention of the IRS.  

Marc Sorrentino admitted that for tax year 2010, he earned taxable income and that he assisted his accountants in preparing his personal tax return by willfully providing them with false information and fraudulently underreporting his income.  

U.S. District Judge Susan D. Wigenton scheduled sentencing for April 25.  Michael Sorrentino faces a statutory maximum sentence of five years in prison for tax evasion. Marc Sorrentino faces a statutory maximum sentence of three years in prison for aiding in the preparation of a fraudulent tax return. Both also face a period of supervised release, restitution and monetary penalties.  Gregg Mark, the accountant for the Sorrentino brothers, previously pleaded guilty in 2015 to conspiring to defraud the United States with respect to their tax liabilities.   

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Carpenito praised special agents of IRS CI, who conducted the investigation, and Trial Attorneys Yael T. Epstein and Jeffrey B. Bender of the Tax Division of the U.S. Department of Justice and Assistant U.S. Attorney Jonathan W. Romankow, who are prosecuting the case. 

Are you in Trouble with the IRS?

Successful Civil and Criminal Tax Representation Selig & Associates practices before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Proven Results Selig & Associates successfully resolves IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Staffing Company Owners Sentenced to Prison for Payroll Tax Fraud – They should have hired SELIG & Associates

They Used Funds Withheld from the IRS to Pay for Luxury Cars and Private School Two former staffing company owners were sentenced to prison today for payroll tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney D. Michael Dunavant.

Mark Stinson, who was convicted in December 2017 at trial of conspiring to defraud the United States, failing to pay over payroll taxes, filing false tax documents, theft of government funds, and aggravated identity theft, was sentenced to 75 months in prison.  His wife, Jayton Stinson, previously pleaded guilty to conspiring to defraud the United States, and was sentenced to one year in prison.     

According to court documents and trial testimony, from 2005 through 2015, Mark and Jayton Stinson operated a temporary staffing company that provided services to businesses.  The staffing company’s standard contract with its customers provided that the staffing company was responsible for withholding employment tax from its employees’ wages and paying over the amounts withheld to the Internal Revenue Service (IRS).

The Stinsons failed to pay over $2.8 million in withholdings and other employment taxes due to IRS, failed to timely file employment tax returns and filed false employment tax returns.  In an effort to avoid making payments to the IRS, the Stinsons changed the name and structure of the company multiple times after accumulating employment tax liabilities, operating as Jayton Stinson Connex Staffing & Janitorial Service, Connexx Staffing Services LLC, Connexx Staffing Services Inc., and Complete Employment Agency.

The Stinsons also conspired to impede efforts by the IRS to collect on the employment tax liabilities owed by their companies.  For example, the Stinsons made false representations to the IRS about their control of the staffing company and their knowledge of the requirement to truthfully account for and pay over the employment taxes, falsely identified multiple family members as company executives, placed the staffing company in the names of nominees who did not have control over the business operations, and established payment arrangements intended to impede an IRS levy placed on their customer payments. The Stinsons used the withheld funds to pay for personal expenses, including a Mercedes-Benz, a Cadillac Escalade, mortgage payments, and private school tuition for their children.

Mark Stinson also filed a fraudulent tax return for a relative that included a false dependent seeking a refund to which the relative was not entitled.  Stinson received a substantial portion of the fraudulent refund.

In addition to the terms of imprisonment, U.S. District Court Judge John T. Fowlkes, Jr. ordered the Stinsons to serve terms of supervised release and to pay restitution of $ 2.8 million.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunavant commended special agents of IRS-Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Damon Griffin and Trial Attorney Nathan Brooks, who prosecuted the case. 

Are you in Trouble with the IRS?

Successful Civil and Criminal Tax Representation Selig & Associates practices before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Proven Results Selig & Associates successfully resolves IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

New York Attorney Charged With Tax Fraud – He’d better call SELIG & Associates

The charges contained in the Indictment are merely accusations and the defendant is presumed innocent unless and until proven guilty

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Richard E. Zuckerman, Principal Deputy Assistant Attorney General of the Tax Division, and James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation, New York Field Office (“IRS”), announced the arrest of STEVEN M. ETKIND, a New York-licensed attorney and partner at a New York law firm, for conspiring to defraud the United States, corruptly endeavoring to impede the internal revenue laws, and tax evasion.

According to the Indictment unsealed today in Manhattan federal court . . . . . 

ETKIND was the head of a New York law firm’s tax, trusts, and estates group and a Certified Public Accountant.  The indictment alleges that ETKIND performed legal work for a successful entrepreneur client, who died in 2008, naming ETKIND as the co-executor of his $35 million estate.

The client’s will directed the creation of charitable trusts, funded with assets from the client’s estate, for the sole purpose of donating to charitable organizations, including those aimed at assisting Jewish sponsored organizations.  ETKIND was named co-trustee of these trusts. 

The indictment charges that ETKIND and his co-conspirator set up a phony charitable organization and used it to steal more than $3.5 million from these charitable trusts – by first directing donations from the trusts to legitimate Jewish charitable organizations, then redirecting the funds to the phony charity accounts that ETKIND and his co-conspirator controlled.  ETKIND used part of the money he stole to purchase a 6,300-square-foot home with a swimming pool in Southampton, New York, titling it in a nominee name. 

To conceal his theft, ETKIND filed, and caused to be filed, fraudulent personal, corporate and charitable trust returns with the IRS and made several false and misleading statements to the IRS during the course of an audit and examination of the phony charity. 

If convicted, ETKIND, 57, faces a statutory maximum sentence of five years in prison on the conspiracy charge, five years on each of the tax evasion charges, and three years for obstructing the internal revenue laws.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.

Mr. Berman and Mr. Zuckerman praised the outstanding efforts by special agents of IRS Criminal Investigation. 

Mr. Berman also thanked the U.S. Department of Justice’s Tax Division for their significant assistance in the investigation. 

The case is being handled by the Office’s Complex Frauds Unit.  Special Assistant United States Attorneys Jorge Almonte and Jack A. Morgan (of the Tax Division) are in charge of the prosecution. 

Successful Civil and Criminal Tax Representation We practice before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435 New York City's Most Trusted Tax Advisors 

Proven Results We successfully resolve IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Guaranteed Service We meet with our clients personally and we return telephone calls promptly. We answer emails and we provide our clients with regular updates and status reports. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

“We believe in Steven Etkind’s innocence and we’re certain the entire tax matter can and will be handled civilly” says David Selig of Selig & Associates

“We believe in Steven Etkind’s innocence and we’re certain the entire tax matter can and will be handled civilly” says David Selig of Selig & Associates. Mr. Selig, a Federal Tax Practitioner and Tax Attorney Bradley Dorin have reviewed the available facts and are confident that Mr. Etkind will be exonerated of any wrongdoing.  “The allegations are sensational and without merit” says Selig "and the stories, and I emphasize the word “stories” smack of yellow journalism”

  

New York Law Journal

New York tax attorney Steven Etkind has been indicted on four federal counts for allegedly embezzling more than $3.5 million from a client’s estate that had been intended for investment into charitable trusts.

"Steven Etkind is absolutely innocent"

says David Selig  

Etkind has been a partner at Sadis & Goldberg and, while there was no biography page Wednesday for Etkind on the firm’s website, he was listed elsewhere on the site as head of the firm’s tax practice.

The Law Journal left messages requesting comment with the three members of the firm’s executive committee, as well as another representative with the firm, on Wednesday evening, but they did not immediately respond to those requests.

According to a from the U.S. Attorney’s Office for the Southern District of New York, Etkind represented an entrepreneur, who named the attorney co-executor of his $35 million before his 2008 death.

Etkind’s client had directed in his will for some of his estate to be used to create trust funds to donate to charitable organizations.

But, according to an indictment unsealed on Wednesday, Etkind worked with a co-conspirator who is not a defendant in the case to funnel money from charitable funds into shell accounts allegedly under the control of Etkind and his co-conspirator.

Etkind allegedly used a portion of the money to purchase a 6,300-square-foot house in Southampton, New York, and tried to cover his tracks by filing fraudulent trust reports with the Internal Revenue Service.

Etkind, 57, is charged with conspiracy, endeavoring to obstruct the enforcement of internal revenue laws and two counts of tax evasion. He faces a maximum prison sentence of 18 years, according to the U.S. attorney’s release.

A graduate of Tulane University Law School, Etkind was admitted to the New York bar in 1987.

Etkind did not respond to a message left at his office requesting comment; neither his indictment nor the U.S. attorney’s news release lists a defense attorney for Etkind.

Successful Tax Representation We practice before the Internal Revenue Service (“IRS”) the New York State Department of Taxation and Finance (“NYSDTF”) the Department of Justice Tax Division (“DOJ”) and the Defense Office of Hearings and Appeals (“DOHA”). *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Proven Results We successfully resolve IRS & NYS tax problems including: Tax Crimes; Tax Evasion; Failure to File a Tax Return and Criminal Non-Filing; Filing False Tax Returns; Installment Agreements; Partial Payment Agreements; IRS Audits; Sales Tax Audits; Sales Tax Controversies; Wage Garnishments; Bank Levies; Seizure of Real Property; Innocent Spouse Relief; Trust Fund Recovery Penalty; Payroll Taxes; Workers Compensation Insurance Audits ("Workers Comp"); Statute of Limitations; Offer in Compromise ("OIC"); Administrative Appeals; Collection Due Process Hearings ("CDP") and most other tax matters. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435

Guaranteed Service We meet with our clients personally and we return telephone calls promptly. We answer emails and we provide our clients with regular updates and status reports. *To schedule a FREE legally privileged consultation with a licensed Federal Tax Practitioner and Attorney call Selig & Associates directly (212) 974-3435