Leonard Man Pleads Guilty To Filing A False Tax Return
Paul Michajlyszyn, of Leonard, Michigan, former Vice President of Odyssey, Inc. a Lake Orion, MI corporation, pleaded guilty yesterday to one count of filing false tax returns with the Internal Revenue Service, United States Attorney Barbara McQuade announced today.
McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Michajlyszyn, entered the guilty plea before U.S. District Judge Arthur J. Tarnow.
Michajlyszyn entered his plea two days after Randal Bellestri, owner of Odyssey, Inc, plead guilty to filing false tax returns and conspiracy to file false tax returns.
According to court records, Odyssey, Inc. produces machine tools for the aviation industry. Beginning before 2004 and continuing until July 2009, Michajlyszyn had an agreement with Randll Bellestri, owner of Odyssey, Inc. regarding the sale of scrap metal left over from Odyssey’s manufacturing operations. Michajlyszyn was authorized by Bellestri to serve as a contact with the scrap metal buyer and to collect the proceeds from the sales in cash. The proceeds were then divided between Michajlyszyn and Bellestri. By accepting only cash for the sale of the scrap, Michajlyszyn was able to conceal the receipt of the cash from Odyssey, Inc. as well as the Internal Revenue Service. Michajlyszyn did not claim the cash proceeds from these scrap metal sales as income on his federal income tax returns. Michajlyszyn’s failure to report these cash proceeds for the 2004 through 2008 tax years caused his income to be understated by approximately $270,483.
Michajlyszyn’s sentencing is set for September 18, 2014 at 2 pm. Filing a false tax return charge carries a maximum term of imprisonment of three years and/or a fine of $250,000.
The case was investigated by special agents of the IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Christopher L. Varner.