Fraud is Confining

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Initially, when fraudsters dream about launching a scam to defraud, they are thinking about how wonderful life is going to be with the additional cash in their bank account. They don’t usually think far enough down the line to consider how confining an act of fraud can be to one’s lifestyle, if caught. An article published in the Pittsburgh Post-Gazette tells the story of how one man’s fraudulent tax return left him confined to his home.

The article states that a periodontist filed a false tax return while going through a routine audit by the Internal Revenue Service (IRS). (Note to self: Don’t file a false tax return while being audited.) As you can imagine, an official investigation was subsequently launched.

It turns out that the man had engaged in fraud for two years and lied on a tax return. (He had deducted $29,000 for business expenses that were actually personal expenses.) He also neglected to report cash payments received from his patients at the dental practice where he worked. (Cash can be hard to trace.)

As a result of his fraudulent tax return, the 55-year-old periodontist was sentenced to six months of home confinement. He also is required to perform 300 hours of free dental service to the poor, serve probation for three years and pay a $20,000 fine plus restitution to be determined by the IRS.

This fraudster is really lucky the Judge didn’t confine him to a jail cell. What seemed like a good idea at the time now has him bound by his fraudulent actions. Let’s hope this guy has learned his lesson and won’t ever attempt to steal from the government again.

Source: Today’s ”Fraud of the Day” is based on an article titled, ”Robinson Periodontist Sentenced to Home Confinement for Tax Fraud,” written by Torsten Ove and published by the Pittsburgh Post-Gazette on September 25, 2014.

A Robinson periodontist was sentenced Wednesday to six months of home confinement on electronic monitoring and ordered to perform 300 hours of free dental service for the poor for cheating on his taxes.

Charles Schwimer, 55, will also be on federal probation for three years and will have to pay restitution in an amount to be determined by the IRS, in addition to a $20,000 fine.

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Larry Benson is currently the Director of Strategic Alliances for Revenue Discovery and Recovery at LexisNexis Risk Solutions. In this role, Benson is responsible for developing partnerships for the tax and revenue and child support enforcement verticals. He focuses on embedded companies that have a need for third-party analytics to enhance their current offerings.