A Virginia businessman told IRS agents in 2018 that they couldn’t afford to pay more than $ 1 million in unpaid taxes, federal prosecutors said in court documents.
The next day, he dropped more than $ 1,100 on a ticket for a Washington Nationals baseball game, prosecutors said, just one example of the luxury lifestyle he lived in.
Currently, 52-year-old Richard Janek faces up to five years in prison for tax evasion. Mr. Yanek, who runs a credit card processing business at Virginia Beach, said Admitted the crime of the plan Thursday in the Eastern District of Virginia.
Authorities say he pays $ 2.5 million in taxes, both personal and business.
“The government’s lengthy and thorough investigation into Mr. Yanek’s tax history has resulted in a petition for one tax evasion case,” Mr. Yanek’s lawyer told McClutch News on Friday. “In line with his desire to resolve this issue, Mr. Yanek has been working for several months to begin the process of fulfilling all his tax obligations and will continue to do so.”
Yanek has been charged with delinquent personal income and business taxes for years starting in 2010 and using his company’s bank account to repay “huge” personal debt, prosecutors said.
According to a statement attached to the plea bargain agreement, Yanek has owned a credit card processing business known as Cardservice of Virginia Inc. or Merchant Central Inc. since 1995.
However, between 2013 and 2018, prosecutors said Yanek did not pay more than $ 1 million in taxes on its business.
According to court filings, his 18 employees received W2 in the meantime, but Yanek did not “consistently” pay the IRS the withholding amount shown on the form.
“His employees, believing that their tax returns are correct, file their tax returns and the funds that the employer deducts from their wages each year are placed in a social security account for post-retirement access. I believed, “said the prosecutor. ..
Yanek has also been accused of not filing personal income tax since 2010, even though the accountant had been filing tax returns for years.
Meanwhile, prosecutors said he “earned millions of dollars in mortgages for seaside homes, personal credit cards, private school tuition, golf and yacht club membership fees.”
Yanek also reduced mortgage payments by changing total income “7” to “1” using one of the unsubmitted tax returns prepared by an accountant, $ 133,435 instead of $ 733,435. The government said it seemed to have earned.
He has also been accused of using his business account to pay more than $ 231,000 for a mortgage, $ 577,000 for a Citibank credit card, and nearly $ 5 million for American Express.
“The specific rates on these credit cards reflect the purchase of luxury retailers, travel, international resorts, plastic surgery and fine restaurants totaling thousands of dollars per night,” the government said.
Prosecutors said that between 2015 and 2019, Yanek spent an additional $ 479,147 on private school tuition and $ 153,191 on golf and yacht club membership fees.
In March 2018, the day after telling an IRS agent that he couldn’t pay the unpaid employment tax, Yanek was accused of spending $ 1,178.50 on a Washington Nationals baseball ticket.
Prosecutors said on suspicion of fraud, Yanek lied to IRS agents about their ability to pay, the number of bank accounts they used, and why they hadn’t filed tax returns for nearly a decade. He is currently in debt to the government of $ 810,549 for personal tax and $ 1.7 million for business tax.
Court documents indicate that Yanek was charged with criminal information on May 6. He waived his right to prosecute and pleaded guilty to one count that escaped income tax payments on Thursday and will be sentenced on September 27.
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