Nutritional Supplement Marketer Pleads Guilty to Tax Crime (he should have hired Selig & Associates)

Selig & Associates. Specializing in 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. 

We can help you with audits, liens, levies and wage garnishments, criminal tax investigations, tax crimes, suspended passports and drivers licenses, Offers in Compromise and most other tax matters. 

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A man pled guilty to one count of attempting to evade the payment of income taxes announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Jason R. Dunn.

According to the plea agreement and other court documents, Craig Walcott operated a multi-level nutritional supplement marketing business and owned and leased residential real estate, while residing in Monument, Colorado.  In April 2010, the Internal Revenue Service (IRS) notified Walcott of an assessment of taxes and penalties for the 2005, 2006 and 2007 tax years of more than $450,000.  After receiving this notice, Walcott took a series of steps to evade the payment of his tax liability.  These steps included transferring properties to nominee entities, encumbering other properties with fictitious mortgages to conceal their equity, and filing false tax returns understating his income.  Walcott also did not file income tax returns for the years 2012, 2013 and 2014. As a result of his conduct, Walcott owes $628,733.00, which he has agreed to pay the IRS in restitution.

Sentencing is scheduled for February 25, 2019.  Walcott faces a maximum sentence of five years in prison.  He also faces a term of supervised release, restitution, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Dunn commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Assistant Chief Andrew Kameros and Trial Attorney Lee Langston, who are prosecuting the case.

Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Income, Payroll and Sales Taxes. 

Suspended Passport and Drivers License. 

Missing Tax Returns Prepared and Filed within 48 Hours. 

IRS Liens, Levies and Wage Garnishments. 

NYS Tax Warrants. 

Income and Sales Tax Audits. 

Payroll and Trust Fund Recovery Penalties. 

Criminal Investigations and Tax Crimes including Tax Evasion. 

Offers in Compromise and all other Tax Matters. 

We Negotiate Excellent Installment Agreements and Monthly Payment Plans. 

New York Man Pleads Guilty to Stolen Identity Tax Refund Fraud

A Springfield Gardens, New York, resident pleaded guilty yesterday to an indictment charging him with nine counts of wire fraud, nine counts of aggravated identity theft, and 17 counts of aiding or assisting in the preparation and filing of false returns, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Richard P. Donoghue for the Eastern District of New York.

According to court documents, Oyeniyi Jaiyesimi, the owner of Pace Financial Services, a tax preparation business located in Springfield Gardens, New York used stolen IDs to file fraudulent tax returns with the Internal Revenue Service and to obtain refunds to which he was not entitled.  In addition, from 2013 through 2015, Jaiyesimi filed multiple false tax returns for clients that fraudulently claimed dependent exemptions.

Magistrate Judge James Orenstein scheduled sentencing for April 3, 2019, before District Court Judge Edward R. Korman.  Jaiyesimi faces a maximum sentence of 20 years in prison for each count of wire fraud, a mandatory minimum sentence of two years in prison for each count of aggravated identity theft, and a maximum sentence of three years in prison for each count of aiding or assisting in the preparation of false returns. He also faces a period of supervised release, restitution, forfeiture, and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Richard P. Donoghue commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Mark McDonald and Eric Powers of the Tax Division, who are prosecuting the case.

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Income, Payroll and Sales Taxes. 

Suspended Passport and Drivers License. 

Missing Tax Returns Prepared and Filed within 48 Hours. 

IRS Liens, Levies and Wage Garnishments. 

NYS Tax Warrants. 

Income and Sales Tax Audits. 

Payroll and Trust Fund Recovery Penalties. 

Criminal Investigations and Tax Crimes including Tax Evasion. 

Offers in Compromise and all other Tax Matters. 

We Negotiate Excellent Installment Agreements and Monthly Payment Plans. 

To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Important Questions & Answers

Q. Do I Have Unpaid Income, Payroll and Sales Taxes? 

A. We Negotiate Excellent Installment Agreements and Payment Plans.

Q. Has My Passport or Drivers License been Suspended? 

A. We’ll Get Your Passport or Drivers License Reinstated. 

Q. Do I have Unfiled Tax Returns? 

A. We’ll Prepare and File Your Tax Returns in 48 Hours.

Q. Is the IRS or NYS Levying My Bank Account and and Garnishing My Wages? 

A. We’ll Get the Levies Released for You. 

If You Answered Yes to Any of These Questions, Call (212) 974-3435 for a Free No Obligation Consultation. 

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Income, Payroll and Sales Taxes. 

Suspended Passport and Drivers License. 

Missing Tax Returns Prepared and Filed within 48 Hours. 

IRS Liens, Levies and Wage Garnishments. 

NYS Tax Warrants. 

Income and Sales Tax Audits. 

Payroll and Trust Fund Recovery Penalties. 

Criminal Investigations and Tax Crimes including Tax Evasion. 

Offers in Compromise and all other Tax Matters. 

We Negotiate Excellent Installment Agreements and Monthly Payment Plans. 

To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Owner of Engineering Firm and CPA Convicted in Tax Scheme

He Caused Millions in Tax Loss and Obstructed IRS Efforts to Collect Money and Penalties Owed  A federal jury in convicted Wagdy Guirguis and Michael Higa of conspiracy to defraud the United States yesterday, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Kenji M. Price. In addition to the conspiracy conviction, Guirguis was also convicted of three counts of filing false corporate income tax returns, one count of failure to file a corporate income tax return, three counts of tax evasion, one count of corruptly endeavoring to obstruct and impede the due administration of the Internal Revenue laws and one count of witness tampering. Higa was convicted of the conspiracy and one count of aiding and assisting in the preparation of a false tax return for one of Guirguis’ business entities. The convictions arise from a scheme to divert funds from Guirguis’ business entities for his own personal benefit and to avoid the payment of federal employment and income taxes.

“Employers who withhold employment taxes from their employees’ paychecks and choose to pocket those funds violate the trust of their employees and the United States,” said Principal Deputy Assistant Attorney General Zuckerman. “The Department of Justice will continue to identify and prosecute employment tax offenders, ensuring that such businesses and executives are held to account and do not gain an unfair advantage over honest employers who follow the law and pay their fair share.”

“Mr. Guirguis owed the Internal Revenue Service employment taxes and with the help of Mr. Higa, conspired to obstruct the Internal Revenue Service’s attempts to collect the tax by concealing income using a nominee entity and preparing false corporate and individual income tax returns,” said Acting Special Agent in Charge Troy Burrus. “The defendants’ actions to obstruct the Internal Revenue Service’s collection efforts are very serious. IRS-Criminal Investigation will continue to pursue employers, who collect these taxes and use the funds for personal gain.”

            According to court documents and evidence presented at trial, Guirguis operated numerous engineering businesses.  Higa, a certified public accountant, was the controller of these businesses.  Higa also served as a nominee officer of another entity controlled by Guirguis.  When the IRS determined Guirguis’ businesses owed over $800,000 in federal employment taxes and assessed a $812,000 penalty, Guirguis and Higa took various steps to place income and assets out of the IRS’ reach. For example, Guirguis and Higa used the nominee entity to fraudulently convey a condominium to Guirguis’ wife.  After an IRS revenue officer began questioning Mrs. Guirguis’ sole ownership of this condominium, Guirguis and Higa instructed a bookkeeper to alter the books and records in an attempt to conceal this transaction from the IRS.

From 2001 through 2012, Guirguis and Higa also used the nominee entity to divert approximately $1.3 million from Guirguis’ businesses for Guirguis’ personal use. As a result of their diversion and concealment, Guirguis’ 2010 through 2012 returns omitted $553,000 in income, resulting in a tax deficiency of $165,000.

In addition, Guirguis filed corporate income tax returns that fraudulently omitted millions of dollars of gross receipts.  For one of his businesses, Guirguis simply did not file a corporate tax return, thereby not reporting more than $1.7 million in gross receipts.

After the IRS levied the bank accounts of one business, Guirguis diverted incoming funds owed to that business, directing payment of the funds to a different business.  Guirguis also instructed a tenant to disregard IRS collection notices and pay rent directly to him rather than to the IRS.  Moreover, Guirguis made false and misleading statements to IRS revenue officers, all in an effort to obstruct the IRS’ efforts to collect on the taxes he and his companies owed.

To impede the criminal investigation into his tax violations, Guirguis falsely told an employee, who had testified before the grand jury, that he did not know about the false backdating done in the books of the nominee entity, and asked the employee to sign a false statement to that effect.

Guirguis and Higa face a maximum sentence of five years in prison each on the conspiracy counts. Guirguis faces a maximum sentence of five years on each of the tax evasion counts, three years in prison on each of the counts involving false tax returns and corrupt endeavors, and one year in prison for the count of failure to file a tax return, as well as a period of supervised release, restitution, and monetary penalties. Guirguis faces an additional maximum 20 year sentence for witness tampering. In addition to the maximum sentence of five years in prison on the conspiracy count, Higa faces a maximum sentence of three years on the aiding and assisting the filing of a false tax return count.

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Income, Payroll and Sales Taxes. 

Suspended Passport and Drivers License. 

Missing Tax Returns Prepared and Filed within 48 Hours. 

IRS Liens, Levies and Wage Garnishments. 

NYS Tax Warrants. 

Income and Sales Tax Audits. 

Payroll and Trust Fund Recovery Penalties. 

Criminal Investigations and Tax Crimes including Tax Evasion. 

Offers in Compromise and all other Tax Matters. 

We Negotiate Excellent Installment Agreements and Monthly Payment Plans. 

To Schedule a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

21 PEOPLE INDICTED IN $15 MILLION TAX FRAUD SCHEME THAT FORGED MILLIONS OF TAX STAMPS FOR CIGARETTES FROM NORTH CAROLINA

You'd better hire Selig & Associates

Takedown by Bronx DA, New York State Tax Dept., Homeland Security Investigations and NJ Treasury Office of Criminal Investigation Yields Equipment and Trove of Forged Tax Stamps 

Bronx District Attorney Darcel D. Clark, New York State Department of Taxation and Finance Acting Commissioner Nonie Manion, Brian Michael, Special Agent in Charge, Homeland Security Investigations Newark; and New Jersey State Treasurer Elizabeth Maher Muoio today announced that a joint investigation has resulted in indictments charging 21 people with forging millions of cigarette tax stamps and trafficking in illegal cigarettes that resulted in the evasion of more than $15 million in taxes and undercutting small businesses. 

District Attorney Clark said, “This scheme involved defendants who allegedly forged and printed millions of tax stamps in an apartment and a printing store. Truckloads of cartons of cigarettes per week were brought from North Carolina, and the defendants put the stamps on the packs and sold them to stores throughout the metropolitan area. This scheme allegedly cheated the state and city out of more than $15 million in taxes in the last six months alone. In addition, this scheme hurts law-abiding businesses that cannot compete with stores illegally selling untaxed, cheap cigarettes.” 

Acting Commissioner Manion said, “The bust of this sophisticated counterfeit tax stamp ring, the largest in Tax Department history, required deft coordination with our partners in law enforcement. I thank them for continuing to support our mission to break up criminal networks like this one and other operations that deprive communities of vital tax revenue and put honest business owners at a competitive disadvantage.” 

Special Agent in Charge Michael said, “This type of criminal activity generates huge profits for criminal organizations, both here and abroad, while depriving communities of the benefits of tax revenues and harming small businesses. Those who engage in such forgeries should know that the cooperative efforts of local, state, and federal law enforcement agencies will ensure that they are apprehended.” 

New Jersey State Treasurer Maher Muoio said, “This criminal enterprise sought to cheat taxpayers in New York and New Jersey out of millions of dollars by peddling truckloads of cigarettes with counterfeit tax stamps. Thankfully, the combined efforts of city, state, and federal law enforcement in New York and New Jersey shut down this operation and put the defendants out of business.” 

District Attorney Clark said 17 of the defendants were arrested in takedowns on November 14, 2018 through November 16, 2018 in locations in the Bronx and Yonkers. Nearly two million counterfeit tax stamps, a printing press and other equipment, as well as more than $120,000 cash were recovered. Authorities also recovered records revealing the transfer of tens of thousands of dollars out of the U.S. 

The defendants have been arraigned before Bronx Supreme Court Justice Martin Marcus. They are due back in court starting November 26, 2018. If convicted of the top count of the indictment, many of the defendants face 8 1/3 to 25 years in prison. 

The defendants are variously charged with first and second-degree Criminal Tax Fraud, second-degree Money Laundering, first-degree Criminal Possession of a Forged Instrument, first- degree Forgery, Cigarette and Tobacco Products Tax and fourth and fifth-degree Conspiracy. 

According to the investigation, between March 2018 and November 2018, defendants Luis Ortiz and Ernesto Guerrero allegedly designed stencils in order to print stamps and sell them for distribution throughout New York City and state without paying city and state taxes. Defendants Bolivar Clase and Nelsa Soler allegedly acquired special wax paper and other supplies, and Guerrero and Ortiz allegedly manufactured the stamps in Ernesto Printing, at 353 Rider Avenue in the Bronx, as well as in Ortiz’ residence at East 173 Street in the Bronx. 

Defendants Carlos Santos, Rafael Dominguez and Wilson Dominguez allegedly resold the stamps or affixed them to packs of cigarettes using a clothes iron and then sold the cigarettes. 

The other defendants allegedly transported the cigarettes from North Carolina or bought and sold stamps throughout New York City and Westchester County.

The case is being prosecuted by Assistant District Attorneys Griffin Kenyon, Sharif Hannan and Nina A. Vershuta, of the Tax and Organizational Fraud Unit; W. Dyer Halpern, Chief of the Tax and Organizational Fraud Unit, under the supervision of Tarek Rahman, Deputy Chief of the Investigations Division, and the overall supervision of Jean T. Walsh, Chief of the Investigations Division. 

The case was investigated by the NYS Tax Department’s Criminal Investigations Division Cigarette Strike Force, with Homeland Security Investigations Special Agent Eric Gallagher, and Supervising Special Agent Russell Glenn of the New Jersey Treasury, Office of Criminal Investigation. 

District Attorney Clark thanked Assistant District Attorney Mary Jo Blanchard, Counsel to the Investigations Division; Howard Feldberg of the Special Investigations Bureau, Gino Pelaez, Financial Analyst, and Trial Prep Assistant Ayisola Johnson, both of the Investigations Division; and the Bronx District Attorney’s Detective Investigators for their assistance with the case. District Attorney Clark also thanked Assistant District Attorneys Jennifer Shaw and Cristina Paquette of the Asset Forfeiture Unit, under the supervision of Beverly Ma, Chief of the Civil Litigation Bureau, for their assistance. 

An indictment is an accusatory instrument and not proof of a defendant’s guilt. 

DEFENDANTS ARRESTED 

CARLOS SANTOS, 61, 812 East 169 Street, Bronx
RAFAEL DOMINGUEZ, 52, 701 West 180 Street, Manhattan WILSON DOMINGUEZ, 49, 812 East 169 Street, Bronx
LUIS ORTIZ, 55, 1544 East 173 Street, Bronx
FELIX TAVEREZ, 44, 1523 Washington Avenue, Bronx
REYNA ALVAREZ, 50, 1980 7th Avenue, Manhattan 

ANTEMIA ALVAREZ, 30, 1980 7th Avenue, Manhattan 

ERNESTO GUERRERO, 57, 353 Rider Avenue, Bronx 

BOLIVAR CLASE, 62, 1212 Grant Avenue, Bronx
NELSA SOLER DEL ROSARIO, 57, 1212 Grant Avenue, Bronx 

AMARIAM GARCIA-CRESPO, 28, 1361 College Avenue, Bronx 

FELIPE CRUZ, 56, 37 Featherbed Lane, Bronx

NANCY LEBRON-DECRUZ, 52, 37 Featherbed Lane, Bronx 

FREDIS GUERRERO, 62, 325 Hawthorne Avenue, Yonkers 

JORGE TIGUA, 52, 2020 Morris Avenue, Bronx
FAUSTO LOPEZ, 54, 2585 Grand Concourse, Bronx 

YAHYA QUATAESH, 67, 39 Landscape Avenue, Yonkers 

UNAPPREHENDED DEFENDANTS 

SANDY BERAS
JESUEL PAULINO
FRANCISCO PAULINO
MARYLEIDA RODRIGUEZ DE GARCIA 

 Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

Former IRS Employee Sentenced to Prison for Aggravated Identity Theft

She Used Information Supplied by Taxpayers to File Fraudulent Returns

A former employee for the Internal Revenue Service (IRS) was sentenced to serve 24 months in prison for aggravated identity theft, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Byung J. 

According to court documents, Stephanie Parker worked for the IRS as a Contact Representative.  Between September 2012 and March 2013, taxpayers called into the IRS for assistance, and Parker handled the taxpayers’ inquiries.  During the calls, Parker obtained the taxpayers’ Social Security numbers and addresses.  On at least five occasions, Parker used the taxpayers’ personal information to electronically file fraudulent tax returns in their names without their authorization.  Parker directed the fraudulent tax refunds to bank accounts controlled by her friends.  Parker, in turn, had the money withdrawn from at least one of those accounts, deposited a portion of the money into her own bank account, and used it for personal expenses.

In addition to the term of imprisonment imposed, Parker was also ordered to serve one year of supervised release and to pay $5,964 in restitution to the IRS.

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online. 

CFO Pleads Guilty to Employment Tax Fraud (he should have hired Selig and Associates)

The former Chief Financial Officer pleaded guilty to willfully failing to pay over employment taxes to the Internal Revenue Service (IRS), announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, from 2010 to 2016, John Herzer was the CFO of AXO Staff Leasing (AXO), a professional employer organization.  Herzer handled all of the company’s finances and had final authority over which creditors to pay and when to pay them. Herzer was also responsible for collecting and paying to the IRS taxes withheld from AXO’s employees’ wages.  Despite this obligation, Herzer did not pay to the IRS AXO’s employment tax withholdings and instead used more than $4.9 million of those funds for his own benefit including paying personal expenses and transferring millions of dollars to his own bank accounts.  In total, Herzer’s fraudulent conduct caused a tax loss to the IRS of more than $13 million.

A sentencing date has not yet been scheduled. Herzer faces a statutory maximum sentence of five years imprisonment, as well as a term of supervised release, restitution and monetary penalties.

Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Robert Kemins and David Zisserson, who prosecuted the case.  Principal Deputy Assistant Attorney General Zuckerman also thanked the U.S. Attorney’s Office for the Western District of Texas (Austin Division) for their substantial assistance.

Selig & Associates Aggressive New York City Tax Advocates We Solve IRS and New York State Tax Problems, Guaranteed. Specializing in Income, Payroll and Sales Tax Issues. IRS Audits, Sales Tax Audits, Unpaid Payroll Taxes, Trust Fund Penalties, Criminal Tax Investigations and Tax Crimes, Installment Agreements and Payment Plans, Offers in Compromise and most other Tax Matters. For a Legally Privileged Consultation with a Federal Tax Practitioner and Licensed Attorney Call (212) 974-3435 or Contact Us Online.