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Articles Posted in Tax Fraud

The former mayor of North Miami Beach has been charged in an alleged $150,000 land investment scheme.

The man was arrested Tuesday and charged with securities fraud, grand theft, sale of an unregistered security and sale of security by an unregistered dealer.

According to the Miami-Dade County state attorney’s office, the man made a series of false investment representations and omitted several facts to an investor who donated $150,000 to the man intended for the development of 2.2 acres of vacant land in North Miami.

An investigation by prosecutors and the Florida Office of Financial Regulation revealed that the partnership failed to gain any additional investors.

Instead of returning the donated $150,000, the money was allegedly used to pay $13,000 toward the former mayor’s home mortgage, $10,000 to his construction company, $86,700 to himself directly and about $30,000 in personal expenses through his construction company, according to police.

Prosecutors said a balance of just $350 was left in the investment account when all was said and done.

The former mayor was being held at the Turner Guilford Knight Correctional Center on a $20,000 bond.

Securities fraud, otherwise known as investment fraud, is an intentional and deceptive business practice that occurs when a person and/or company conceals financial information to try to influence the purchasing behavior of investors and shareholders. People found guilty of securities fraud can face serious penalties that may include restitution, fines, jail time loss of license and others. If you are facing charges for any type of securities fraud offense, it is critical that you seek the advice of a South Florida White Collar Crimes Lawyer at Whittel & Melton who will fight to protect your interests.

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A Fort Lauderdale resident was sentenced to 12 months and one day in prison for tax evasion.

According to documents filed with the court, the 53-year-old man evaded paying taxes on more than $1.5 million in income that he earned from 2002 to 2015. Except for the 2007 tax year, the man has not filed an income tax return since 2002. He worked for a Fort Lauderdale company selling hurricane-resistant windows to residential homeowners in South Florida. In August 2009, the Internal Revenue Service (IRS) notified the man of its intent to levy his wages because of his failure to pay taxes. According to reports, the man established his own business and changed his employment status from an employee to an independent contractor to obstruct the IRS’s collection efforts. The man listed himself as the director of the business and opened a business bank account in its name. Due to the man’s change in employment status, his employer paid his business directly and the IRS’s attempts to levy the man’s wages were thwarted.

From approximately August 2009 through April 2017, the man allegedly used his business’ bank account to pay for personal expenses, including rent, cigars, international travel, entertainment, his girlfriend’s cosmetic surgery, jewelry, and a boat. He also apparently falsely classified numerous personal expenses as business expenses on the memo line of the checks drawn on the business bank account.

The man apparently admitted that he made these false entries with the intent to claim false business expense deductions and evade the assessment of his income taxes. The man also apparently admitted that his actions caused a tax loss of more than $351,241.

In addition to the term of prison imposed, the judge ordered the man to serve two years of supervised release and to pay $459,481.03 in restitution to the IRS.

When tax matters turn criminal or have the potential to turn criminal, you must take immediate action to minimize or eliminate the potential consequences. The operative word when dealing with criminal matters is speed: the earlier you have a criminal defense attorney assess the situation and work quickly to resolve the matter, the less the damage can be.

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Tax evasion isn’t the only thing on former Hialeah Mayor Julio Robaina’s plate these days, it appears he’s also been busted for having a mistress. News reports claim that Luis Felipe Perez, now in prison for running a $45 million jewelry-investment scam, paid Robaina more than $300,000 in cash for proceeds from high-interest $850,000 loan between friends.

Robiana's mistress is unknown. This Mary Bolen, perhaps the most famous mistress of Henry VIII's era.

Robiana’s mistress is unknown.  Mary Boleyn        is perhaps the most famous mistress of           Henry VIII’s era.

Why the cash payments for the high interest loan? The Feds say Robaina was spending the money on his mistress and needed to keep it secret from his wife. The mistresses’ identity has not been revealed.

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