A dentist from Danville, California, was sentenced today by San Francisco U.S. District Court to serve 24 months in prison, followed by a term of three years of supervised release after being convicted by a federal jury of conspiring to defraud the United States and evading his income taxes from 1998 through 2001.
According to the indictment and evidence introduced at trial, in approximately 1995, the California dentist became a client of Tower Executive Resources, a Denver organization that promoted a tax evasion scheme involving the use of false invoices and secret offshore bank accounts. The dentist’s medical practice paid bogus expenses to Tower to generate false tax deductions. Tower then deposited the bulk of the funds into a secret offshore bank account that the dentist controlled.
Over a 10-year period, the dentist sent approximately $300,000 to a secret offshore bank account through the Tower system. In addition, when the IRS learned of the Tower scheme and audited the dentist’s tax liabilities, he stopped filing income tax returns and falsely claimed that he believed the law did not require him to file returns.
The dentist’s father, an oral surgeon in California, was also charged in the same indictment with conspiracy to defraud the United States and attempting to evade tax on income he earned from his medical practice through his participation in the Tower program. He is currently awaiting trial.
The Department of Justice made the announcement in a news release today.