WASHINGTON - A federal grand jury in Boise, Idaho, has returned an indictment charging Michael Fitzpatrick, formerly of Hope, Idaho, with tax evasion and failing to file tax returns, the Justice Department and Internal Revenue Service (IRS) announced today.
According to the indictment, which was returned yesterday and filed today, from about 2002 through 2004 Fitzpatrick marketed and sold products that claimed to allow people to completely eliminate their credit card debt and other types of debt. Fitzpatrick sold these debt elimination products through the internet and through paid agents. Fitzpatrick operated under several different business names, including Dynamic Solutions Inc. and NAES Inc.
The indictment further alleges that Fitzpatrick failed to file individual income tax returns for 2003 and 2004. Fitzpatrick used offshore bank accounts and bank accounts held under the names of businesses and nominees to disguise payments for personal expenses.
In addition, the indictment alleges that Fitzpatrick, as the President of Dynamic Solutions, a Washington corporation, failed to file a corporate income tax return for 2004. Additionally, as the President of NAES, a Nevada corporation, Fitzpatrick failed to file a corporate income tax return for 2004.
An indictment merely alleges that a crime has been committed, and a defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Fitzpatrick faces a maximum of 14 years in prison and a maximum fine of $700,000.
The case is being investigated by IRS - Criminal Investigation and is being prosecuted by Tax Division Trial Attorneys Lori A. Hendrickson and Jennifer R. Laraia.