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Investment advisor pleads guilty to criminal tax violations

| Sep 12, 2014 | Criminal Tax Violations |

A man from Vadnais Heights, Minnesota, has pleaded guilty to criminal tax violations as well as misappropriating assets from clients for his investment firm. The 43-year-old investment advisor reportedly used his father’s money and client investments for personal purchases after depositing the funds in his bank account. Authorities say that he misappropriated more than $1.5 million.

The Internal Revenue Service’s Criminal Investigation Division investigates people who may be violating the tax system in the United States, as does the Department of Justice. The St. Paul Field Office’s special agent in charge of the IRS CID said that the IRS “takes particular interest in cases where someone, for their personal benefit, has taken what belonged to others.”

The investment advisor pleaded guilty to tax evasion for failing to file personal income taxes in 2010 and 2011. However, he also reportedly did not file personal tax returns in a “timely manner” for years 2005 through 2007. That resulted in a tax lien against him for almost a half-million dollars. He has agreed to pay about $1.2 million to the IRS in restitution. In addition, he will pay restitution to his clients and his father. According to the U.S. attorney’s office, the man lied to his clients when they asked about their investments.

Tax evasion and similar federal charges can have significant consequences. Heavy fines, restitution and even federal prison time may be assessed against someone convicted of such crimes. Federal tax crimes require a different approach in terms of defense strategies. An attorney experienced in defending federal criminal charges can provide more information on possible strategies, including plea bargains, within the federal court system.

Source: CBSlocal, “Local Vadnais Heights Investment Advisor Pleads Guilty To Tax Evasion” Sep. 10, 2014