Our Videos

April 17, 12

NEWS / Former Partner at Major International Accounting Firm Sentenced to Prison for Tax Crimes


Stephen A. Favato, a resident of Point Pleasant Beach, N.J., and a former partner in BDO Seidman LLPís Woodbridge, N.J., office, was sentenced to 18 months in prison for tax crimes, the Justice Department and the Internal Revenue Service (IRS) announced today. In August 2010, a jury sitting in Newark, N.J., found Favato guilty of one count of corruptly endeavoring to obstruct and impede the Internal Revenue laws and one count of aiding and assisting in the preparation and filing of a false income tax return.



During the trial, evidence presented proved that from late 2001 through April 2005, Favato attempted to obstruct the IRS by, among other conduct, advising his client, Daniel Funsch, on how to include false items on the 2002, 2003 and 2004 joint income tax returns for Funsch and his then-wife. Additionally, the evidence proved that Favato knowingly prepared and signed false joint income tax returns for the Funsches for these years, causing over $114,000 of tax loss to the IRS in connection with the Funschesí filed 2002 return and attempting to cause over $70,000 of tax loss in connection with tax years 2003 and 2004.



The evidence presented at the trial established that Favato advised Funsch to significantly reduce the salary payments that Funsch was receiving from his corporation and to instead have this compensation paid to Funschís limited liability company, Great Escape Yachts LLC, in the form of purported lease payments for Funschís yacht. However, his corporation had not leased the yacht. This course of action recommended by Favato enabled Funsch to fraudulently deduct his personal yacht expenses as business expenses. In addition, the evidence presented showed that Favato advised Funsch on how to falsely increase his expenses in order to fraudulently eliminate a portion of the gain on three properties that Funsch sold in 2002 and 2004. Finally, the evidence showed that Favato advised Funsch to report inflated charitable contributions on Funschís 2003 tax return. The jury acquitted Favato on one count of tax evasion.



The case was investigated by Special Agents of the IRS Ė Criminal Investigation and prosecuted by Trial Attorneys Patrick J. Murray and Sean Delaney of the Justice Departmentís Tax Division.



Additional information about the Tax Division and its enforcement efforts is available at www.usdoj.gov/tax .

http://www.justice.gov/opa/pr/2012/April/12-tax-481.html

Tags: criminal investigation, corporation,
 




Testimonials

AnnaMaria Realbuto
Thank you for all your assistance and efficiency...
Read More »
Kateryna Melnychenko
Thanks a lot Anton!...
Read More »
Rani Payne
Thank you so much! Iím sure I will be in touch again with something else that will need to be apost...
Read More »
Serge Bauer Law
Thank you again for your help with this case!...
Read More »



FAQ

What Information Does The FBI Have?
Read More »
Q. How much time does the foreign State have to reply once service has been effected?
Read More »
Is there additional post-completion OPT available to students working in the high-tech industry?
Read More »
Q: How do you determine whether the Convention applies in a case involving U.S. citizen prospective adoptive parent(s) residing abroad who seek to adopt a child resident in the United States?
Read More »






News

November 30, 23
New York enacts clean slate legislation for old criminal records
Read More »
November 29, 23
Russian soldier forges death certificate to dodge Ukraine War
Read More »
November 27, 23
GA burglars steal birth certificates and social security cards during house break-in
Read More »
November 16, 23
Birth certificate reveals name of baby boy of Kourtney Kardashian and Blink-182 drummer Travis Barker
Read More »