Bryn Mawr Realtor Pleads Guilty To Tax Charges
Randall Stein, 55, of Bryn Mawr, PA pleaded guilty today to three counts of filing a false tax return for the years 2006, 2007, and 2008. Stein is the co-founder and former President of WP Realty, Inc. Stein founded WP Realty (formerly known as Weingarten Properties) with Bryan Weingarten in 1995. WP Realty is a Bryn Mawr, PA based commercial real estate company that specializes in the acquisition, development, leasing and management of grocery store-anchored shopping centers. Weingarten, 53, of Ardmore, PA, is the co-founder and CEO of WP Realty.
According to the informations filed separately against Stein and Weingarten, the defendants established the partnership entities of Stein Realty Capital, LP and Weingarten Capital, LP, as repositories for fee income earned through their employment with WP Realty. These partnerships had no business relationship to the fees earned, no operating expenses, and no employees. Both men used these partnerships as a means to deduct personal expenses, thereby reducing their taxable income on their personal income tax returns.
For the years 2006 through 2008, Weingarten filed tax returns with the Internal Revenue Service claiming approximately $5.5 million in false business expenses for his company, Weingarten Captial, LP, in an attempt to reduce his federal income tax liability. Weingarten knew that these were in fact personal expenditures. Weingarten pleaded guilty on April 10, 2013 to three counts of filing false tax returns for the tax years 2006, 2007, and 2008.
For the years 2006 through 2008, Stein filed tax returns with the Internal Revenue Service claiming approximately $334,499 in false business expenses for his company, Stein Realty Capital, LP, in an attempt to reduce his federal income tax liability. Stein knew that these expenses were personal in nature.
Stein will be sentenced on February 18, 2014, before the Honorable Legrome D. Davis, Jr., United States District Court for the Eastern District of Pennsylvania. He faces a maximum sentence of nine years imprisonment. A sentencing date has not yet been set for Weingarten. He also faces a maximum sentence of nine years imprisonment.
This case was investigated by IRS Criminal Investigations. It is being prosecuted by Assistant United States Attorney A. Nicole Phillips and Special Assistant United States Attorney Tiwana Fleming of United States Department of Justice, Tax Division.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525