There are two pieces of good news for Michael Carlow of Pittsburgh. First, he only get 35 months at ClubFed (he served eight years previously). And second, the statute of limitations expired on the IRS on $5 million of the $6.2 million in unpaid taxes, and it can’t be reinstated just because he’s in trouble with the law again.
Let’s go back to the beginning. Back in the 1990s, Mr. Carlow bought some Pittsburgh businesses that made consumer products that are associated with Pittsburgh: Iron City Beer and Clark Bar. He put himself off as a local entrepreneur rescuing local businesses. Instead, he was inflating the value of his businesses by check kiting and other bad checks. He was convicted of bank and tax fraud and spent eight years at ClubFed.
After being released from ClubFed, the DOJ states that Mr. Carlow concealed assets, filed false tax returns, and then didn’t file returns. He was accused of tax fraud; however, in a plea deal he pleaded guilty to obstructing the IRS. He received 35 months at ClubFed.
The good news for Mr. Carlow was on the financial side. The statute of limitations has run out for $5 million of the $6.2 million he owed. That said, he does owe for $1.2 million.
