Man Charged With Tax Evasion For Funds From Krzyzaniak Scam
MINNEAPOLIS—Yesterday in federal court, a Twin Cities’ man was charged with failing to file taxes, knowing that his income was obtained from a $20-million investment scam. John Marc Mulcahey was charged via an Information with two counts of failure to file a tax return.
Allegedly, for tax years 2008 and 2009, Mulcahey failed to file income tax returns with the Internal Revenue Service (“IRS”), knowing that part of his income was given to him by Michael Joseph Krzyzaniak, who orchestrated the investment scheme. In February of 2012, Krzyzaniak was sentenced to 151 months in prison on one count of wire fraud and one count of income tax evasion in connection to that investment scam.
If convicted, Mulcahey faces a potential maximum penalty of one year in prison on each count. All sentences will be determined by a federal district court judge. This case is the result of an investigation by the IRS-Criminal Investigation Division, the Federal Bureau of Investigation, and the United States Postal Inspection Service. It is being prosecuted by Assistant U.S. Attorney Christian S. Wilton.
A defendant, of course, is presumed innocent until he or she pleads guilty or is proven guilty at trial. Per U.S.
Department of Justice policy, the U.S. Attorney’s Office is not allowed to provide the age and city of residence for
defendants charged in criminal tax cases.