Archive for the ‘Ohio’ Category

22 Years, But at Least He’ll be Away from his Wife and Mistress

Tuesday, August 30th, 2011

We’ve written about Thomas Parenteau before. His trial was straight out of a cheap novel: He was accused of tax fraud and money laundering while living in a 30,000 square foot mansion with his wife and his mistress. Last year, he was found guilty on 11 of 13 counts. Yesterday, Mr. Parenteau received 22 years at ClubFed for his crimes.

Joe Kristan and TaxDood have more.

$200,000,000 Refund Letters Come in Ohio, but the Refunds Won’t

Tuesday, March 15th, 2011

Some things are too good to be true. Imagine receiving a letter in the mail saying you will receive an income tax refund of $200,000,000. Yes, $200 million.

Well, 9,701 taxpayers in the Buckeye State got such letters. As first reported in the Sandusky Register, taxpayers were told that that because their refunds had been split into a paper check and direct deposit, just a paper check would be issued…for $200 million.

The letters were in error, of course, and according to the Ohio Department of Taxation the problem has been fixed. But it does bring up an interesting issue that a few of my clients have faced: What do you do if you receive a refund you are not entitled to? Let’s say that you actually receive a check from the Ohio Department of Taxation for $200 million.

If you receive a tax refund you are not entitled to, the government can and will ask for that money back…plus interest. If you get such a check, don’t cash it — it’s not your money. Contact the tax agency and let them know of the problem. They’ll likely direct you to mail the check back to the agency.

In any case, Ohio, which is facing an $8 billion budget deficit, won’t be sending out $200 million refunds. The letters themselves and the resultant publicity have added a minor amount of money to their deficit (and some humor to tax season).

Carpet Owner Gets a Year at ClubFed

Tuesday, February 1st, 2011

Leif Rozin is a former owner of Buddy’s Carpet in Cincinnati. Back in 2008 he was convicted on tax fraud charges. It took a while but he was finally sentenced last Friday; he received one year at ClubFed and must make restitution of $380,000 in tax.

The fraud scheme involved sham insurance policies purchased in the US Virgin Islands. The government isn’t appreciative of sham anythings used as tax deductions. The “Buddy” of Buddy’s Carpet & Flooring, Burton B. “Buddy” Kallick, died in 2007 before the case came to trial.

Helping Boss, Wife, and His Mistress Leads to ClubFed, Not a Cheap Novel

Monday, November 22nd, 2010

Dennis Sartain used to be the typical accountant. He worked for Thomas Parenteau, a Columbus, Ohio homebuilder. Of course, Mr. Parenteau was found guilty of 11 counts of tax evasion and related charges, and that’s not typical. And as I reported earlier, Mr. Parenteau’s case comes straight from the pages of a cheap novel yet it’s absolutely true.

Well, Mr. Sartain was sentenced this week and he’ll have plenty of time to think about his dysfunctional employer and how he helped him commit tax evasion; he received 11 years at ClubFed. Mr. Sartain had turned down a two-year sentence; that’s an oops moment that Joe Kristan notes (along with more of the sordid details from this case).

We Won’t Have Jim Traficant to Kick Around

Wednesday, November 3rd, 2010

Well, Election Day has come and gone. Congressional races generally went to Republicans, and the GOP will be the majority party in the House next January. That means that John Boehner of Ohio will be the next Speaker.

Mr. Boehner had no trouble winning his district (he got over 65% of the vote). However, Jim Traficant will not be heading back to Congress. Mr. Traficant, who was convicted on tax and corruption charges a few years ago, lost his bid to be elected to Congress. He received just 16% of the vote in Ohio’s 17th District. The current Congressman, Tim Ryan, was reelected with nearly 54% of the vote.

It would have been fun for tax bloggers to have Mr. Traficant in Congress. Fortunately, Ohioans apparently were sane last night.

Guess Who’s Coming to Dinner!

Monday, August 30th, 2010

Our favorite convicted tax felon has made the ballot in Ohio. James Traficant has seven signatures more than required and will be running as an Independent for Congress in Ohio’s 17th Congressional District. The Mahoning County Board of Elections will reportedly meet today and approve his name to be on the ballot; the Trumbell County Board of Elections will meet later this week and do the same.

For those who don’t remember the bombastic former Congressman and convicted felon, James Traficant was known for one-liners; “Beam me up” was one of his favorites. Back in 2002 he was indicted on federal corruption charges. He was convicted of ten counts including bribery and tax evasion. He was released in 2009.

Somehow this Congress deserves to have Jim Traficant. I’m not sure the American people do, though.

Ohio Adds Gambling Loss Deduction…In 2013

Wednesday, July 14th, 2010

The Ohio legislature recently passed HB 519. The measure creates the Ohio Casino Commission to run Ohio’s soon-to-exist casinos. There’s a bit of good news for Ohioans buried in the measure. Beginning with tax year 2013, Ohio residents will be able to deduct gambling losses up to the amount of their winnings. Professional gamblers today can already take their gambling losses (they are allowed to net their wins and losses on Schedule C); this measure will allow amateur gamblers to take the losses.

Note that this deduction will be available only if you itemize your deductions, and only to the extent that federal law allows gambling losses to be deducted. I mention this because some Democratic Congresscritters are discussing eliminating all itemized deductions…which would be disastrous for amateur gamblers.

The legislation also notes an obvious fiscal reality: “[The Act] [a]llocates to Ohio all casino gaming winnings paid by any person licensed by the Ohio Casino Control Commission so that winners pay Ohio income taxes on such winnings.” Expect non-residents of Ohio who win significant amounts in Ohio casinos to receive W-2Gs so that Ohio can make sure that they receive their fair share of the tax revenues.

Do note that Ohio has city income taxes. Each city would need to adopt a similar measure for gambling losses to be deductible on city income taxes. Given current budgetary shortfalls, that’s unlikely to occur in the near future.

The Ending Was the Denemout of a Novel, Too

Monday, July 5th, 2010

Two months ago I wrote about the trial of Columbus homebuilder Thomas Parenteau. Mr. Parenteau was accused of 13 counts of fraud, money laundering, obstruction, and witness tampering. The jury reached a verdict last week and Mr. Parenteau did receive a slight amount of good news. He was found not guilty of two counts of money laundering.

Unfortunately for Mr. Parenteau, there were 11 convictions, too.
Mr. Parenteau’s co-defendants in the scheme had earlier pleaded guilty. Mr. Parenteau, when sentenced, could find himself at ClubFed for 130 years.

I earlier wrote,

So far we’ve found out that the mistress, Pamela McCarty, is the mother of Mr. Parenteau’s two daughters; that all three lived in the same mansion; phony jobs and phony paychecks; allegations of $18 million in fraudulent loans…and the trial should last a couple more weeks.

This might be one trial transcript that could be made into a novel.

Straight From the Pages of a Cheap Novel

Sunday, May 23rd, 2010

Take one man, his wife, and his mistress, throw in a 30,000 square foot mansion, add a dose of federal charges (bank and wire fraud, tax conspiracy, money laundering, witness tampering, and obstruction of justice) and you get the latest novel from author—actually, you get the trial of Thomas Parenteau in Columbus, Ohio. The Department of Justice has obtained guilty pleas from 11 other individuals in this case; however, Mr. Parenteau is defending himself.

So far we’ve found out that the mistress, Pamela McCarty, is the mother of Mr. Parenteau’s two daughters; that all three lived in the same mansion; phony jobs and phony paychecks; allegations of $18 million in fraudulent loans…and the trial should last a couple more weeks.

Joe Kristan has more.

Traficant Running

Thursday, May 13th, 2010

My friend Scott reminded me that I should let everyone know that Jim Traficant has thrown his hat in the ring. He’s running as an independent in Ohio’s 17th Congressional District. Tim Ryan, a Democrat, currently is the Congressman in that district. The district includes Youngstown, Niles, Warren, and Kent.

Mr. Traficant has stated that he has no money or campaign staff. One thing he likely won’t lack is name recognition or publicity; there were 210 stories on his running for Congress.