[taxabletalk] Russ: ClubFed Is In Their Future

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Posted by Russ:
ClubFed Is In Their Future
http://www.taxabletalk.com/posts/1243568867.shtml


   Two corporate tax fraud stories crossed the wires today. In one case
   the participant will spend over 20 years at ClubFed; the other will
   almost certainly spend significant time there too.
   Frank Amadeo bragged that one day he'll rule the world. Well, he
   didn't send $181 million to the IRS, so perhaps he could have afforded
   a small country. That's after he spends the next 22 1/2 years at
   ClubFed. [1]He was sentenced yesterday and must also make $181 million
   in restitution. If there's a certainty in tax prosecutions, it's that
   if you don't remit trust fund taxes you will be prosecuted. [2]Peter
   Pappas has more on this story.
   Meanwhile, two orders of magnitude less still is a large amount of
   fraud. [3]Fisher Sand & Gravel operates twelve plants and is a big
   player in the aggregate industry. The IRS began an audit and
   discovered that one executive, Michael Fisher, had used company funds
   for an African safari and to renovate a truck stop he owned. Since
   those were personal expenses (and not "necessary and ordinary"
   business expenses) that's a problem. [4]Mr. Fisher will be pleading
   guilty to tax fraud later this week. Two other executives, Amiel
   Schaff (the former CFO) and Clyde Frank (the former comptroller)
   previously pleaded guilty. The company itself is under a deferred
   prosecution agreement and will be making restitution of $1.17 million
   relating to 2001-2004 corporate taxes. Additionally, the company is
   cooperating in a probe of 2005-2009 corporate taxes.

References

   1. http://www.miamiherald.com/business/story/1069290.html
   2. http://blog.pappastax.com/index.php/2009/05/28/payroll-tax-crimes-lovegod-gets-22-years-for-failure-to-remit-payroll-taxes/
   3. http://www.fisherind.com/fsg.html
   4. http://www.grandforksherald.com/event/apArticle/id/D98FJHQ00/