Michael Lavery

[Demosthenes]

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FOR IMMEDIATE RELEASE TAX
THURSDAY, FEBRUARY 2, 2012 (202) 514-2007
WWW.JUSTICE.GOV TTY (866) 544-5309
UTAH MAN CHARGED WITH TAX FRAUD AND BANK STRUCTURING
WASHINGTON – A federal grand jury in Salt Lake City has returned an indictment charging Michael Lavery with one count of presenting a false claim to the United States and one count of structuring a currency transaction to avoid the reporting requirements, the Justice Department and Internal Revenue Service (IRS) announced.
According to the indictment, in February of 2009, Michael Lavery, a resident of Sandy, Utah, filed a joint 2008 income tax return, claiming an income tax refund of over $249,000 that was based on the use of false IRS Forms 1099-OID. The indictment further alleges that Lavery attempted to structure a transaction, by making withdrawals of $10,000 or less from the proceeds of his false income tax return, in order to evade the laws that require financial institutions to report currency transactions that exceed $10,000.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt. If convicted, Lavery faces a maximum prison sentence of 10 years.
The case is being investigated by IRS-Criminal Investigation and is being prosecuted by Trial Attorneys Michael Romano and Stuart Wexler of the Justice Department’s Tax Division.

[Demosthenes]

FOR IMMEDIATE RELEASE
TUESDAY, JULY 31, 2012
WWW.JUSTICE.GOV

UTAH MAN PLEADS GUILTY TO FILING A FALSE CLAIM FOR TAX REFUND

WASHINGTON – Michael Lavery, a resident of Sandy, Utah, pleaded guilty yesterday for presenting a false claim to the United States, the Justice Department and Internal Revenue Service (IRS) announced. Lavery appeared before U.S. Magistrate Judge Paul M. Warner in Salt Lake City.

According to the plea agreement, in February 2009, Lavery filed a false joint 2008 income tax return claiming an income tax refund of $249,373. Lavery’s false claim was based on the use of fictitious Forms 1099-OID, Original Issue Discount. Lavery created the fictitious Forms 1099-OID and filed the false tax return with the assistance of others.

The plea agreement further states that in February 2009, after receiving an income tax refund of $249,373, Lavery purposely withdrew the refund from his bank in amounts of $10,000 or less so that the bank would not file a Currency Transaction Report.

Lavery faces a potential maximum sentence of five years in prison and a fine of up to $250,000.

Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, commended the investigative efforts of IRS - Criminal Investigation special agents, who investigated the case, and Tax Division Trial Attorneys Michael Romano and Stuart Wexler, who are prosecuting the case.

Sentencing is scheduled for Nov. 29, 2012, before Chief Judge Ted Stewart in Salt Lake City.