Brighton electrician found guilty of tax fraud
Posted by Assistant Metro Editor Amalie Nash
July 12, 2007 16:58PM
A Brighton electrician was convicted of tax evasion in federal court for failing to file tax returns for several years and claiming he had zero income, the U.S. Attorney's Office announced today.
Brent Gross, 45, of Brighton, was convicted by a federal jury of three counts of tax evasion, three counts of filing false tax returns, and one count of presenting a fictitious financial instrument.
The attorney's office said evidence presented during the four-day trial showed Gross was employed as an electrician, earning between $74,000 and $83,000 per year from 1997 to 2003. By 2001, he became a client of Guiding Light of God Ministries, a business allegedly devoted to aiding clients in the preparation of false tax returns and false financial instruments, documents allege.
Prosecutors said Gross stopped filing all federal and state tax returns from 2001-2003 and provided his employer with false forms saying he was exempt from all withholdings. Gross also attempted to obtain refunds for taxes he paid from 1997-1999 by filing false amended tax returns showing "zero income" during those years, prosecutors said.
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FOR IMMEDIATE RELEASE
Detroit, Michigan
Brighton Electrician Convicted of Tax Evasion Based on Frivolous Anti-Tax Theories
Brent Gross, 45, of Brighton, was convicted by a federal district court jury, after approximately two hours of deliberation, of three counts of tax evasion, three counts of filing false tax returns, and one count of presenting a fictitious financial instrument, announced United States Attorney Stephen J. Murphy.
Murphy was joined in this announcement by Maurice M. Aouate, Special Agent in Charge, Internal Revenue Service Criminal Investigation.
The evidence presented during this four day trial showed that, during 1997 through 2003, Gross was employed as an electrician earning between $74,000 and $83,000 per year. By 2001, Gross became a client of Guiding Light of God Ministries (GLGM), formerly know as American Rights Litigators, of Lake County, Florida. GLGM was a business allegedly devoted to aiding clients in the preparation of false tax returns and false financial instruments.
In December 2003, the United States District Court for the Middle District of Florida issued a preliminary injunction against the abusive tax schemes promoted by GLGM .
While a client, Gross stopped filing all federal and state tax returns for the years 2001 through 2003. Gross also provided his employer with two false Forms W-4 stating that he was exempt from all withholdings, preventing any withholdings from being collected and sent to the Internal Revenue Service.
The evidence presented to the jury showed that Gross attempted to obtain refunds for taxes he paid in 1997 through 1999 by filing false amended tax returns showing “zero income” during those years based on the “Section 861” argument. This type of argument, claiming that wages earned in the United States are not taxable income, has been deemed frivolous by the courts and IRS.
According trial evidence, in October 2003, Gross also attempted to pay outstanding IRS penalties and interest by sending to the IRS a fictitious financial instrument known as a bill of exchange that he purchased from GLGM for $100. This false bill of exchange for $2,128.28 purported to be drawn from and paid to the United State Treasury.
“The law is crystal clear,” said Aouate. “Everybody has a duty to pay their taxes.”
Mr Murphy thanked IRS Criminal Investigation for their investigation of the case. The case was prosecuted by Jeffrey McLellan and Kenneth Vert, Trial Attorneys for the Tax Division,
Department of Justice.
FOR IMMEDIATE RELEASE
Detroit, Michigan
Brighton Electrician Convicted of Tax Evasion Based on Frivolous Anti-Tax Theories
Brent Gross, 45, of Brighton, was convicted by a federal district court jury, after approximately two hours of deliberation, of three counts of tax evasion, three counts of filing false tax returns, and one count of presenting a fictitious financial instrument, announced United States Attorney Stephen J. Murphy.
Murphy was joined in this announcement by Maurice M. Aouate, Special Agent in Charge, Internal Revenue Service Criminal Investigation.
The evidence presented during this four day trial showed that, during 1997 through 2003, Gross was employed as an electrician earning between $74,000 and $83,000 per year. By 2001, Gross became a client of Guiding Light of God Ministries (GLGM), formerly know as American Rights Litigators, of Lake County, Florida. GLGM was a business allegedly devoted to aiding clients in the preparation of false tax returns and false financial instruments.
In December 2003, the United States District Court for the Middle District of Florida issued a preliminary injunction against the abusive tax schemes promoted by GLGM .
While a client, Gross stopped filing all federal and state tax returns for the years 2001 through 2003. Gross also provided his employer with two false Forms W-4 stating that he was exempt from all withholdings, preventing any withholdings from being collected and sent to the Internal Revenue Service.
The evidence presented to the jury showed that Gross attempted to obtain refunds for taxes he paid in 1997 through 1999 by filing false amended tax returns showing “zero income” during those years based on the “Section 861” argument. This type of argument, claiming that wages earned in the United States are not taxable income, has been deemed frivolous by the courts and IRS.
According trial evidence, in October 2003, Gross also attempted to pay outstanding IRS penalties and interest by sending to the IRS a fictitious financial instrument known as a bill of exchange that he purchased from GLGM for $100. This false bill of exchange for $2,128.28 purported to be drawn from and paid to the United State Treasury.
“The law is crystal clear,” said Aouate. “Everybody has a duty to pay their taxes.”
Mr Murphy thanked IRS Criminal Investigation for their investigation of the case. The case was prosecuted by Jeffrey McLellan and Kenneth Vert, Trial Attorneys for the Tax Division,
Department of Justice.