Living the good life!

[Lee B]

"Kernersville, North Carolina:

 Business owner Brandon Michalak has been sentenced to 15 months in prison and ordered to pay restitution of $956,028 to the IRS.

Michalak, who pleaded guilty in January, was part-owner of the metal recycling business Sarah's Recycling that specialized in the collection and bulk resale of used catalytic converters.

From 2014 to 2018, he omitted $11,022,953 in sales generated by his business. Each year, Michalak reported minimal taxable income and claimed the EITC even as he led a lavish lifestyle that included home and property purchases without financing, home renovations, pool installation, jewelry purchases in cash, and at least 20 vehicle purchases for himself and family members."

[Abby Normal]

Always glad to see these cheaters get caught and made an example.

[Terry D EA]

Ya know, I always wonder what people are thinking when they engage in the unscrupulous activities. Do they think they won't get caught? I guess living the good life isn't so good right now. Will the IRS ever get their money from this guy? Now I laugh, I alerted a CPA of a client of mine about miss classifying an account so there are no questions in the event of an audit. Seems really trivial compared to this. I hope this guy prepared his own tax returns and didn't take anyone else with him.

[Patrick Michael]

We have a big problem here with thieves crawling under cars with a saws all and removing catalytic converters.  They will hit apartment complexes, college campuses, and other large parking lots, stealing the convertors.  Wonder how many stolen convertors they purchased!

[mcb39]

2 hours ago, Patrick Michael said:

We have a big problem here with thieves crawling under cars with a saws all and removing catalytic converters.  They will hit apartment complexes, college campuses, and other large parking lots, stealing the convertors.  Wonder how many stolen convertors they purchased!

Probably a lot or most of them.  That seems to be the racket of choice these days.

And to think that we beat ourselves up and worry over the little things; at least I do.

[Gail in Virginia]

15 months is all that he got?  That seems light for such blatant, intentional fraud.  

[Yardley CPA]

2 hours ago, Gail in Virginia said:

15 months is all that he got?  That seems light for such blatant, intentional fraud.  

In today's world, we are fortunate he received that sentence and not a week of probation. 

[mcbreck]

I mentioned it a long time ago that one of my best friends is going to prison for Medicare Fraud. He's plead guilty finally and is scheduled to be sentenced in a few weeks. We are having lunch tomorrow and I'm interested to hear what he has to say. Our previous luncheons have been interesting. Per the sentencing guidelines I think he'll get 4 years (out in 2) and then 3 years of house arrest. The key will be how much money he has left and whether they'll be able to keep the house when it's over.

One thing I've learned, when you withdraw money from your retirement account to pay a court order of restitution, that's taxable and he'll owe a penalty for early withdrawal. I'm wondering if his previous accountant isn't going to do a whistleblower case on him to get the IRS to come after his expenses claimed on an illegal kickback scheme. Not that he'll have any money most likely.