Robert J. Fedor, Esq., L.L.C.

Plea bargain best option for man facing serious tax crimes

Individuals facing criminal charges related to tax evasion or tax fraud face serious fines, penalties and time behind bars. In some cases, evidence against individuals accused of such crimes is strong and convincing. In cases where evidence that an individual committed tax fraud or intentionally failed to pay taxes is undisputable, a plea bargain is often the best option.

A 52-year-old real estate developer recently plead guilty to criminal charges related to income tax fraud. The man is currently awaiting sentencing and could face up to five years in federal prison. Allegations and criminal charges against the man, however, were far more serious and plentiful than the plea bargain his defense team was able to procure.

According to court documents, the 52-year-old man owned and ran a real estate development company. During the tax years 2007 and 2008, court documents show the man borrowed roughly $1.4 million dollars from his real estate business ventures to use on personal items.

The man not only failed to repay investors, but also failed to report the money he took as income. As a result of the financial shortfalls, many of the developer's projects stalled and investors eventually realized he no longer had the financial means to complete the projects.

While the man currently faces up to five years in prison for filing a 2007 fraudulent tax return, things could have been much worse. Prosecutors were previously prepared to present evidence related to additional criminal activities carried out by the developer including bank fraud, conspiracy and wire fraud.

Source: The Durango Herald, "Developer pleads guilty to tax evasion," Joe Hanel, July 8, 2013