Perhaps it was the holiday weekend, or perhaps it’s the start of summer, but the tax evaders weren’t that busy last week. Still, there are some amusing tales of evasion gone wrong.
First, we head to White Plains, New York. Yahezkel Elia and David Elyaho were accused of tax evasion. The IRS alleged that their business were far more profitable than they showed on their tax returns. And when the government found a logbook showing the 12,000 money orders that the two men used to conceal their true income the jury had no problem finding them guilty of tax evasion. Given that the evasion apparently involved millions of dollars the two men will likely soon be boarding at ClubFed.
Next, we journey to Mesa, Arizona. Last week John Stacey was indicted on tax evasion charges. The government alleges that he hid income and assets from his paving businesses by putting money into his mother’s bank account, using phony social security numbers and employer identification numbers, and filing false bankruptcy financial disclosure statements. That’s a trifecta of problems that could send Mr. Stacey to ClubFed if he’s found guilty.
Finally, Michael Kyereme won’t be scamming the City of Newark, New Jersey or Cisco Systems anymore. Mr. Kyereme pleaded guilty to mail fraud and tax evasion. Mr. Kyereme was a systems administrator for the City of Newark. When a Cisco part went bad he was supposed to use Cisco’s online “SMARTNet” system to order a replacement part, and then have the bad part shipped back to Cisco. He may have done that a couple of times. More often, though, he just ordered “replacement” parts so that he could sell them to another individual and pocketed the money. He would ship other less expensive parts back to Cisco.
The indictment shows that the loss to Cisco is estimated at $4,179,667. That alone is enough to get Mr. Kyereme a stay at ClubFed. But there was an additional problem: tax evasion. Mr. Kyereme profited from his nefarious dealings but didn’t report them on his tax returns. In 2006 his gains from this scheme totaled $1,242,483, or an additional $429,846 in tax.
Interestingly enough when Mr. Kyereme was taken into custody $3 million worth of Cisco equipment was found in his home and automobile. Mr. Kyereme remains out on bail until his sentencing later this Fall.
If you get a bright idea make sure it’s a legal one, and make sure you pay your taxes. It’s always a lot easier to pay them now then to find yourself paying them later…and possibly having to make a journey to ClubFed.