10617 Jones Street
Suite 201-B
Fairfax, VA 22030

Call For Free Consultation

Call Us

Tax Fraud – Schemes Revealed

A tax fraud investigation revealed vendors  who set up an “under the table” payroll tax scheme and an underground banking system.

Well, there’s no real limit to the extent people take to hide their tax schemes.  Take Charles Adams, Catherine Floyd and William Dion from Sanbornville, NH. In 2012 they were convicted for conspiracy to defraud the government using multiple tax fraud schemes.  The 3 set up several companies to act as “under the table” payroll tax vendors assisting approximately 150 clients also defraud the government out of employer and individual payroll taxes.  Over the course of the endeavor, they helped conceal $2.5 million in unreported payroll. Evidence at trial showed that Floyd and Dion also set up an underground warehouse banking network to conceal, on their own behalf and on behalf of their customers, income and expenses by co-mingling business receipts with other funds.  The underground banking network deposited 28 million. Dion got 84 months in jail; Adams got 48 months; and Floyd got 60 months.  From the endeavors, the government suffered a loss of approximately $3.4 in tax revenue and ordered that it be repaid as part of the criminal sentencing. Of course what they did was illegal, but the conduct of those customers was also illegal.

So, you may ask what happened to these customers.  Take Gary Alcock of Westborough, MA, for instance, who was convicted and sentenced to 14 months in prison for conspiracy to defraud the government and willful failure to file tax returns  and ordered to pay $515,518 in restitution to the United States for tax evasion.  Alcock owned a trash hauling business and a landscaping business. Using Adams’, Floyd’s and Dion’s schemes, he tried to divert and hide business income and “disappear” on paper.

If your tax planning, filing and paying hasn’t worked out right, or you’ve been scheming,  get things right before the IRS comes knocking.  Call the Geno Law Firm for professional help.

Share this Article

About the Author

Geno Law Firm, P.C. provides Dedicated and Efficient Legal representation for DWI, Criminal Defense, Immigration & Tax Issues in Fairfax, Virginia.

Free Initial Consultation Get Help Now