Anyone familiar with accountant Larry Legel

[Demosthenes]

Feds: Jupiter Farms couple faked religious organization as part of tax evasion plan
By Vanessa Blum | Sun-Sentinel.com
1:28 PM EDT, March 10, 2008

A Jupiter Farms couple evaded paying taxes on $750,000 of income with the help of a Fort Lauderdale accountant, federal prosecutors alleged in an indictment unsealed Monday.

The indictment charges Earl Wolfe, 59, his common law wife Linda Edell, 60, and accountant Lawrence Legel, 61, with conspiring to defraud the Internal Revenue Service from 1999 to 2004.

One way Wolfe allegedly hid assets from the IRS was by professing to be a priest and creating a Nevada corporation that claimed tax-exempt status as a religious entity.

According to the indictment, Wolfe worked in Pompano Beach as an unlicensed architect and concealed his income using a maze of bogus corporate entities, such as trusts, bank accounts and limited liability corporations.

In addition to the conspiracy charge, Wolfe faces six counts of filing false income tax returns. If convicted, Wolfe faces a maximum sentence of 23 years. Edell and Legel each face maximum terms of five years.

The three made initial appearances in Fort Lauderdale federal court Monday and each was released on $100,000 bond, a court official said.

Albert P. Walter, the attorney who represented Legel at the hearing, could not be reached for comment. It was unclear from court records whether Wolfe and Edell had lawyers.

According to the indictment, Wolfe instructed architecture clients to direct payments to Penta Trust or Sun Blest Designs, a Florida limited liability corporation. Between 1999 and 2004, Wolfe and Edell cashed roughly $643,000 in checks made payable to those entities at a local check cashing store but did not report any of the income on tax returns, prosecutors allege.

After being questioned by IRS agents, Wolfe reported earning just $600 each year, the indictment states.

Prosecutors further allege that Wolfe established a religious entity in Oct. 2003 called the Office of the Presiding Overseer of the Domicile Creators Services Ministry. Later that year, Wolfe purchased two 2004 Harley Davidson motorcycles, which he registered to that entity, the indictment states.

[Judge Roy Bean]

I've seen some really dumb ideas, but the idea of going to a check-cashing place to avoid reporting income and the taxes is hillarious. In the first place, they keep records of everything and these bozos gave up some percentage of every check. Now they'll wind up paying taxes on it anyway.

[jkeeb]

Office of the Presiding Overseer of the Domicile Creators Services Ministry. Later that year, Wolfe purchased two 2004 Harley Davidson motorcycles,

When starting your own religion, it is necessary to update the previous ones. Since Asses would currently be impractical may need to substitute the animal for a Harley.

I still think this one will work.

[Disilloosianed]

It also helps to actually do some sort of religious activities. I can't find any information on Domicile Creators Services Ministry except the arrest stories.

[Bashful]

Looks like another corporate sole scheme. I think the government has won about 100% of corporate sole cases. Yet they keep on trucking.

[Demosthenes]

Press Release
SELF-ACCLAIMED PRIEST AND TWO OTHERS CHARGED AND ARRESTED FOR INCOME TAX VIOLATIONS
March 10, 2008

FOR IMMEDIATE RELEASE

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Michael E. Yasofsky, Jr., Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division, announced today’s arrest and unsealing of a seven count Indictment charging defendants Earl R. Wolfe, 59, and Linda C. Edell, 60, common law spouses, residents of Jupiter Farms, Florida, and Lawrence W. Legel, 61, a certified public accountant (CPA) from Fort Lauderdale, Florida, with income tax violations. The Indictment charges each defendant with one count of conspiracy to defraud the Internal Revenue Service (IRS), in violation of Title 18, United States Code, Section 371. In addition to the conspiracy count, Wolfe was charged with six counts of willfully filing false individual income tax returns with the IRS for tax years 1999-2004, in violation of Title 26, United States Code, Section7206 (1). All three defendants will made their initial appearances in court today before Magistrate Judge Seltzer in Ft. Lauderdale.

According to the Indictment and court documents, Wolfe is an unlicensed architect who operates his business from Pompano Beach, Florida. As further alleged in the Indictment, Wolfe, Edell and Legel conspired to defraud the IRS by concealing and failing to report a substantial amount of Wolfe’s taxable income for the years 1999-2004. The defendants attempted to conceal approximately $750,000 in business income and assets by creating and using various bogus entities such as trusts, limited liability companies, corporation soles, corporations and a nominee bank account.

According to the Indictment, Wolfe and Edell caused the creation of Penta Trust, naming defendant Edell as Trustee. Wolfe, with Legel’s assistance, caused the creation of Sun Blest Designs, a Florida limited liability corporation. Wolfe and Legel opened a checking account in the name of Sun Blest Designs at Wachovia Bank. In order to conceal his business income from the IRS, Wolfe instructed his clients to direct payments to Penta Trust or to Sun Blest Designs for the services he rendered. Wolfe and Edell would either negotiate the checks at a local check cashing store or would deposit the checks in the checking account in the name of Sun Blest Designs. During the time period charged in the indictment, Wolfe and Edell allegedly cashed approximately $643,000 in checks made payable to Penta Trust and Sun Blest Designs at a check cashing store.

It was further a part of the conspiracy that after being questioned by IRS investigators about his business income, defendant Wolfe filed fraudulent income tax returns for calendar years 1999-2004, in which he reported having $600 of business income each year and omitted all of the income he had diverted to Penta Trust and Sun Blest Designs.

The Indictment also charges that Wolfe, purporting to be a priest, caused the creation of the Office of the Presiding Overseer of the Domicile Creators Service Ministry, a Nevada corporation sole, purporting to be a tax exempt religious entity. Wolfe used this tax exempt religious entity to conceal assets, including real estate and vehicles from the IRS.

U.S. Attorney Alex Acosta stated, “Tax evasion, even by a few, affects all law-abiding taxpayers who comply with our nation’s tax laws. With the help of the IRS Criminal Investigation Division, we will investigate and prosecute these cases.”

Michael E. Yasofsky, Special Agent in Charge of the IRS-Criminal Investigation Division, stated, “Establishing bogus entities for the purpose of evading taxes is a crime. IRS-CI will vigorously investigate those individuals who use bogus entities to evade their tax obligation.”

If convicted, Wolfe faces a maximum term of imprisonment of twenty-three (23) years, while Edell and Legel each face a maximum term of imprisonment of five (5) years.

Mr. Acosta commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant United States Attorney Jeffrey A. Neiman.

[Demosthenes]

The Indictment

http://www.usdoj.gov/usao/fls/PressRele ... hments.pdf

[LPC]

defendants Earl R. Wolfe, 59, and Linda C. Edell, 60, common law spouses, residents of Jupiter Farms, Florida,

It's not clear to me what is meant by "common law spouses" when Florida does not allow common law marriages. It seems like nothing but a euphemism for cohabitation.

[Dr. Caligari]

It seems like nothing but a euphemism for cohabitation

...which is itself a euphemism for shtupping.

[Demosthenes]

http://www.accountingtoday.com/news/Sus ... 164-1.html

A Florida CPA who pled guilty to a tax misdemeanor for assisting his client, a self-proclaimed priest, in hiding income from the IRS, has had his suspension from practice extended after the IRS Office of Professional Responsibility won an appeal challenging the original length and date of suspension.

[LPC]

The IRS press release:

IRS Office of Professional Responsibility Prevails
on Appeal Against CPA

April 25, 2011

WASHINGTON -- The Internal Revenue Service's Office of Professional Responsibility (OPR) recently prevailed in an agency appeal against a Florida certified public accountant, who challenged the length of the expedited suspension sought by OPR, after he pled guilty to a tax misdemeanor, according to the published Decision on Appeal.

Lawrence Legel, a Ft. Lauderdale practitioner who was represented by counsel, voluntarily waived his right to a trial in Federal District Court and pled guilty to a violation of section 7203 for assisting with a client's efforts to hide income from the IRS. When OPR initiated an expedited proceeding to indefinitely suspend him, Legel recanted his admission of guilt, alleging prosecutorial misconduct and coercion by his criminal defense attorney.

In a subsequent administrative hearing on the suspension, rejecting OPR's recommendation of a 36 month suspension, Administrative Law Judge Susan Biro, imposed a suspension of 24 months and calculated the start date for the suspension from the date Legel was placed on probation in the criminal proceeding. Legel's probation commenced one year before OPR took action to suspend him from practice before the IRS. OPR appealed both the length and commencement date of the suspension.

On March 31, the Treasury Appellate Authority (TAA) ruled that 36 months was the appropriate suspension period under the circumstances, and that the correct date from which to calculate the period of suspension is the date on which OPR imposed its suspension under the expedited procedure provisions of Circular 230.

According to the published Decision on Appeal, the Appellate Authority reviewed the administrative law judge's analysis of aggravating and mitigating factors, agreeing with some and disagreeing with others. Seriously aggravating factors were " Legel's lack of concern with telling the truth in sworn testimony in the [criminal proceeding] and in his testimony in the disciplinary proceeding, and his lack of remorse . . . both weigh very heavily against suitability [to practice before the IRS]," according to the Appellate Authority.

"The Appellate Authority makes it clear in his decision that he considers a conviction of knowingly and willfully assisting in the failure of another to pay income tax to be a very serious charge that strikes at the heart of the agency's mission and is directly contrary to the duties of one who practices before the IRS," said OPR Director Karen L. Hawkins. "Convicted practitioners can expect OPR to continue its aggressive use of the expedited suspension procedures in Circular 230 to quickly and efficiently remove them from practice for the taxpaying public's protection."

[JamesVincent]

defendants Earl R. Wolfe, 59, and Linda C. Edell, 60, common law spouses, residents of Jupiter Farms, Florida,

It's not clear to me what is meant by "common law spouses" when Florida does not allow common law marriages. It seems like nothing but a euphemism for cohabitation.

Is it possible that the "priest" married himself and "wife" in a religious ceremony but, gosh and behold, forgot about the state certificate? So they would be an un-married married couple.

[Pottapaug1938]

defendants Earl R. Wolfe, 59, and Linda C. Edell, 60, common law spouses, residents of Jupiter Farms, Florida,

It's not clear to me what is meant by "common law spouses" when Florida does not allow common law marriages. It seems like nothing but a euphemism for cohabitation.

Is it possible that the "priest" married himself and "wife" in a religious ceremony but, gosh and behold, forgot about the state certificate? So they would be an un-married married couple.

I recall a divorce case I was asked to handle, years ago, in which the "wife" was answering some basic questions at the intake interview. She said that he and her "husband" had never been married in a church, but that he had assured her that, if they moved in together and lived together for a certain length of time, they would be "married under common law", and would save the money that they'd have to spend on a wedding (both of their families were dirt-poor). She was not at all pleased to learn that Massachusetts does not recognize common-law marriage (at least for its residents), and that her boyfriend had essentially talked her into being his steady bed partner.

Fortunately, child support was not an issue; but she was quite put out to learn that she would essentially have to sue for "palimony" if she wanted any sort of spousal support from him (and since they both worked at fast food restaurants, there wasn't a lot of money to be had, even if the suit were successful).