WASHINGTON - Bradley C. Brennecke, a resident of Pleasant Plain, Ohio, and Bruce A. Mrusek, a resident of Maineville, Ohio, appeared in federal court today before U.S. Magistrate Judge Timothy S. Hogan in Cincinnati on conspiracy and various tax charges, the Justice Department and Internal Revenue Service (IRS) announced. Mrusek and Brennecke, who are both dentists, were indicted yesterday by a federal grand jury and charged with tax evasion, conspiracy to defraud the IRS and passing fictitious instruments. Mrusek was also charged with filing false business tax returns.
According to the indictment, Brennecke, who operated Eastgate Dental Care Inc. in Cincinnati and Goshen Family Dentistry Ltd. in Goshen, Ohio, failed to pay taxes for 1998, 2002, 2003 and 2004. Additionally, the indictment alleges that Brennecke transferred title of his house to his wife to conceal it from the IRS, sent the government bogus documents that purported to pay his tax liabilities and filed false tax returns.
According to the indictment, Mrusek, who owned and operated Wilmington Dental Management Services in Wilmington, Ohio, evaded his 2002, 2003 and 2004 taxes by transferring his assets to his wife’s name, sending bogus documents to the IRS that purported to pay his tax liabilities, using a trust to pay personal expenses and filing false personal tax returns. Additionally, the indictment alleges that Mrusek filed false tax returns for Wilmington Dental Management Services by reporting deductions that the business did not incur.
According to the indictment, Brennecke and Mrusek conspired to defraud the IRS beginning around the time that the IRS began civil audits of each of them. Brennecke and Mrusek assisted each other in the mailing of various fraudulent documents to the IRS and U.S. Treasury Department. Brennecke assisted Mrusek in the transfer of assets out of Mrusek’s name. Additionally, Brennecke and Mrusek are charged with submitting fictitious obligations labeled "Secured Promissory Notes" to the U.S. Department of the Treasury as purported payment of their tax debts. Each of these documents purported to be in the amount of $4.8 billion.
An arraignment date has not yet been set. If convicted on all counts, Brennecke faces a maximum term of 75 years in prison and a maximum fine of $1.75 million. Mrusek, if convicted on all counts, faces a maximum term of 79 years in prison and a maximum fine of $2.25 million.
The case is being prosecuted by Tax Division trial attorneys Shawn T. Noud and Daren H. Firestone. The case was investigated by the IRS Criminal Investigation Division.
Additional information about the Justice Department’s Tax Division and its enforcement efforts may be found at http://www.usdoj.gov/tax.