Financial Crime Update: $6.5M Asphalt Fine; Tax Preparer Banned; $2.4M Evasion Confession

Financial Crime Update $6.5M Asphalt Fine; Tax Preparer Banned; $2.4M Evasion Confession
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A Michigan asphalt company must pay a $6.5 million punishment after colluding with other asphalt companies over four years to rig bids for paving work across the state.

Asphalt Specialists LLC, based in Pontiac, pleaded guilty on Jan. 30 to conspiring with Al’s Asphalt Paving Company Inc. from March 2013 to November 2018 and F. Allied Construction Company Inc. from July 2017 to May 2021, according to the US Department of Justice (DOJ).

The co-conspirators coordinated each other’s bid rates so that the agreed-upon losing firm submitted non-competitive bids, giving customers the impression of competition when, in fact, the co-conspirators had already decided who would win the contracts.

All three corporations were charged with conspiracy as part of an ongoing federal antitrust investigation into bid-rigging and other anticompetitive behavior in the asphalt paving services industry.

Al’s Asphalt pleaded guilty and was ordered to pay a $795,661.81 fine on July 31. Allied has also pleaded guilty and is awaiting sentence.

Six other people have been charged as part of the probe, according to the DOJ. Tax Return Preparer Shuts Down After Overstating Customer Refunds

A Texas tax preparer has been shut down after allegedly inflating customers’ tax returns for two years.

On Wednesday, the United States District Court for the Northern District of Texas granted a permanent injunction prohibiting Ruben Gonzalez, a Texas tax return preparer, and anybody operating with or under his direction from completing federal tax returns for others.

According to the injunction, Gonzalez is prohibited from using his “Sin Barreras Income Tax” business to prepare returns for others because he or those working for him allegedly significantly overstated customers’ tax refunds in a large number of returns prepared at the business between 2021 and 2023.

They accomplished this by creating or inflating business losses, documenting charity donation deductions that did not occur, and falsely claiming energy credits and coronavirus family sick leave credits to which the customers were not entitled.

According to the federal complaint, Gonzalez caused the United States to lose more than $20 million in tax revenue over two years by persistently overstating clients’ tax returns.

Gonzalez must submit notice of the injunction to everyone for whom he or his preparers have prepared federal tax returns, modified tax returns, or refund claims since January 1, 2021.

The permanent order also forced Gonzalez to publish a copy of the injunction in all locations where he did business, as well as a statement on all social media accounts and websites stating that he is not permitted to prepare tax returns.

Medical Equipment Seller Pleads Guilty of $2.4 Million in Tax Evasion A Florida man pled guilty Wednesday to illegally avoiding over $2.4 million in business-related taxes.

According to court documents and affidavits, Roger Whitman, 76, manufactured and sold medical equipment, earning millions of dollars in gross receipts. Between 2002 and 2018.

The DOJ announced on Tuesday that Whitman has not filed an individual income tax return or made any tax payments since 2000.

In 2012, the IRS assessed Whitman approximately $800,000 in taxes for the years 2002 to 2009. In response, Whitman established a trust, with his fiancée serving as trustee, to conceal his income and assets.

Whitman asked his girlfriend to open two bank accounts in the trust’s name, with her as the sole signatory. Whitman deposited his business income into the trust’s bank accounts and used the proceeds to cover personal needs.

According to the DOJ, he also registered a new corporation to run his firm in July 2019 to prevent IRS collection operations.

Whitman, who is expected to be sentenced on November 13, faces up to five years in jail, as well as supervised release and monetary fines.

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With more than two years of expertise in news and analysis, Eileen Stewart is a seasoned reporter. Eileen is a respected voice in this field, well-known for her sharp reporting and insightful analysis. Her writing covers a wide range of subjects, from politics to culture and more.