Frank A. Rubino , ESQ.

FEDERAL AND INTERNATIONAL CRIMINAL DEFENSE

Coral Gables: 305-858-5300
Houston: 713-574-7716
Toll-Free: 1-866-718-3994
Main Menu
Practice Area

Lender charged with tax evasion

A lender and developer based in the affluent city of Bellevue, Washington, has now been indicted in a tax crime case. The man, 67, has been hit with a four-count indictment which was unsealed by the courts this past Monday.

The indictment alleges that he hid his assets for ten years, understating his earnings and funneling income from his business deals into secret accounts that the Internal Revenue Service was unaware of. Faced with possible penalties of up to 5 years, per count, he has pleaded not guilty and was released on bond Monday. He has a court-appointed attorney who has yet to comment publicly on the case.

The man had spent years acting as what is known as a "hard money" lender. This meant that he provided loans with very high interest rates to real estate developers who couldn't get loans from banks. According to the indictment, he earned millions of dollars during those years. However, the indictment contends that he did not report that income, instead reporting financial losses on his tax returns.

He allegedly had commissions from business deals paid to a company owned by a friend, a now-bankrupt real estate professional. The money would go into an account said to belong to his adult children, but would wind up transferred to his personal account and was used for his own expenses.

The indictment against him says that he used the cash to purchase luxury items for himself, friends, and family members. It is also suggested that he wanted to hide the money to avoid paying the I.R.S. $533,000 he owed from a 1997 settlement. That settlement was a result of unpaid taxes from 1989 to 1991.

The man's lifestyle is illustrated by his purchase of a $4.2 million Lincoln Tower penthouse, and his use of a private jet and country club membership. He is said to have bought $1 million in casino chips and to have spent $460,000 on chandeliers.

Yet last summer the man, currently residing in Rancho Mirage, California, told the court that his sole income was $1,400 each month from Social Security.

There are many facets of tax evasion legal cases. An attorney with experience in tax evasion issues can help mitigate the consequences of the charges against you.

Source: The Seattle Times, "Former lender indicted on charge of tax evasion" No author given, Aug. 06, 2013

Coral Gables Office

Frank A. Rubino, Esq.
550 Biltmore Way Suite 780
Coral Gables, FL 33134

Local: 305-858-5300
Toll Free: 1-866-718-3994
Coral Gables Law Office Map
Email the Firm

Houston Office

Frank A. Rubino, Esq.
712 Main St
Houston, TX 77002

Local: 713-574-7716
Toll Free: 1-866-718-3994
Map and Directions
Email the Firm