Articles Tagged with Tax fraud

 Wagdy Guirguis and Michael Higa have been convicted of conspiracy to defraud the United States .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.”

A whistleblower who exposed a tax fraud scheme by Enron Bankers Trust before the company collapse has been awarded $1.1 million under a new tax law whistleblower program allowing for payment of a “bounty” for information about tax fraud. The whistleblower, a Wall Street banker, who has chosen to remain anonymous, revealed that Enrain inflated its book earnings due to abusive tax shelters set up with the help of Wall Street banks. The shelters involved improper duplication of tax deductions so Enron could generate illusory pre-tax income on its financial statements. The tax fraud allowed Enron to evae more than $600 million in taxable income. If you are aware of major tax fraud, contact attorney Newman at Jeff@JeffNewmanLaw.com or call him directly at 617-823-3217.