Businessman convicted of income tax evasion - Bonner County Daily Bee: Local News

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Businessman convicted of income tax evasion

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Posted: Saturday, January 12, 2013 10:00 am

WASHINGTON – A Coeur d’Alene jury convicted Michael George Fitzpatrick, 51, of Hope of two counts of income tax evasion after a four-day trial before U.S. District Judge Larry A. Burns.

In September 2012, Fitzpatrick was tried on four tax fraud counts. That jury rendered guilty verdicts on two counts of failure-to-file 2004 corporate income tax returns but was unable to reach verdicts on the tax evasion counts, said U.S. Attorney Wendy J. Olson, Assistant Attorney General for the Tax Division. The Friday verdict was the result of a second trial on those two charges.

Fitzpatrick was remanded into custody immediately.

According to the indictment and evidence introduced at both trials, Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004 the business’s gross sales exceeded $9 million, operating under the names Dynamic Solutions, Inc. and NAES. The evidence proved Fitzpatrick last filed an individual income tax return in 1996. At trial the government proved the corporations failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of almost $1.4 million.

The evidence at trial established that Fitzpatrick sent over $5 million offshore to WWIN, a “warehouse” bank located in the Dominican Republic. Fitzpatrick accessed this money through the use of a debit card and through wire transfers.

During a two-year period, Fitzpatrick used his offshore funds to purchase his personal residence and two four-unit apartment buildings in northern Idaho, with a combined cost of over $700,000. Fitzpatrick also wired $114,980 from his offshore bank accounts to the Bellagio Casino during nine trips to Las Vegas, Nev.

Sentencing is scheduled for May 13, 2013. The maximum penalty Fitzpatrick faces on each count of tax evasion is five years in prison and a $250,000 fine. The two convictions for failure to file corporate income tax returns each carry a maximum penalty of one year in prison and a $100,000 fine.

 “Paying income tax is a solemn obligation of citizenship,” said Olson. “Those who hide income and evade taxes by sending money off-shore undermine our democracy. This verdict sends a strong message that those who seek to avoid their tax responsibilities will be punished to the fullest extent of the law.”

“This verdict should send a clear message, it’s imperative for all Americans to pay their share of taxes and those who commit income tax evasion will be brought to justice,” said Stephen Boyd, IRS Criminal Investigation Special Agent in Charge for the State of Idaho.  

The case was investigated by special agents from the Boise office of IRS Criminal Investigation and prosecuted by Tax Division Trial Attorneys Lori A. Hendrickson, Christopher P. O’Donnell, and Erin S. Mellen, with support from the United States Attorney’s Offices in Boise and Coeur d’Alene.

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4 comments:

  • mike_is_innocent posted at 1:55 pm on Sat, Jan 19, 2013.

    mike_is_innocent Posts: 2

    They flew in a special judge to persecute him too. A judge who has written against your rights that are protected by the second amendment

     
  • mike_is_innocent posted at 1:53 pm on Sat, Jan 19, 2013.

    mike_is_innocent Posts: 2

    The judge threatened Mike if he dared to defend himself. Maybe someone should do a little reporting instead of just cutting and pasting DOJ propaganda. Now a good productive man will be taken from his family (wife and two teenage daugters) by the terrorists from DC who could not provide ANY evidence that the code even applies to Mike or any of us because Mike was denied due process, and the prosecution was relieved of its burden of proof. Pay attention people, the "government" is stealing your God given rights. The real story is here: http://marcstevens.net/articles/dc-terrocrats-v-sandpoint-man-2-0.html

     
  • Luv83864 posted at 6:25 pm on Sat, Jan 12, 2013.

    Luv83864 Posts: 702

    He was a very nice guy when I knew him. He was my landlord for about a year and half. However I didn't suspect such a thing from him.

     
  • Bill Litsinger posted at 12:20 pm on Sat, Jan 12, 2013.

    Bill Litsinger Posts: 1394

    I wonder if Mr. Fitzpatrcik has a friend name Phil that lives in the Hayden area? Hopefully he spends some hard time in prison and then is forced to pay all back taxes with interest and penalties.