Owner of Miami-Dade Wholesale Distributing Company Charged and Arraigned on Tax Fraud Scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and José A. Gonzalez, Special Agent in Charge, Internal Revenue Service, Criminal Investigation Division (IRS-CID), announced that defendant David Bradman, 54, of Miami, was arraigned today before U.S. Magistrate Judge Andrea Simonton on a six count indictment, filed April 5, 2012, charging him with three counts of making false U.S. Income Tax Returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1), and three counts of tax evasion, in violation of Title 26 U.S.C. § 7201. A trial date has not yet been set.
According to the indictment, Bradman was the sole owner and operator of Diplomat Trading, Inc., in Miami, Florida. The company was a wholesale distributor of consumer electronics that exported merchandise to Latin America. CHF Electronics, Inc. was a Panamanian company incorporated in 2000.
The indictment alleges that for calendar years 2005 through 2007, Bradman falsely and knowingly inflated the amounts listed as mortgages, notes and bonds payable, and the corresponding interest deductions, in his U.S. Income Tax Returns for his S Corporation, Forms 1120S, in the name of Diplomat Trading, Inc. Bradman created the illusion of a bona fide commercial business relationship between Diplomat Trading and CHF Electronics. In fact, however, Bradman controlled both Diplomat Trading and CHF Electronics, and knew that these two companies did not have a genuine commercial business relationship. The indictment further alleges that Bradman used CHF Electronics to cycle money for his personal use.
Similarly, according to the indictment, Bradman filed false amended U.S. Individual Income Tax Returns, Forms 1040X, for calendar years 2005 and 2007, and filed a false U.S. Individual Income Tax Return, Form 1040, for calendar year 2006 in which he substantially understated his income and the amount of tax due and owing to the United States.
Mr. Ferrer commended the investigative efforts of the Internal Revenue Service, Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorney Lois Foster-Steers.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
A copy of this press release may be found on the website of the United States Attorney's Office for the Southern District of Florida at http://www.usdoj.gov/usao/fls. Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.