Owner of Miami-Dade Wholesale Distributing Company Pleads Guilty to 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, pled guilty today to one count of making a false U.S. Income Tax Returns for an S Corporation, Forms 1120S, in violation of Title 26 U.S.C § 7206(1) for the tax year 2005. Sentencing has been scheduled for April 1, 2013, at 3:30 p.m. before U.S. District Judge Joan Lenard.
According to statements made in court and documents filed in the case, 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. In 2000, a scheme was devised where defendant along with others set up a Panamanian corporation, CHF Electronics (CHF) and opened a bank account in the company’s name in Panama. Thereafter on October 20, 2002, a false note was created to make it appear as though Diplomat Trading had borrowed $6,301,008.16 from CHF Electronics. The note was signed by Bradman. Checks representing purported payments on this note were sent from Diplomat Trading to CHF Electronics. 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. In 2005, Bradman had a second company, MDA Inversiones incorporated in Panama. Approximately $700,000 was moved from CHF’s bank account in Panama to a Panamanian bank account for MDA Inversiones. A majority of those funds were then wired to the United States so that Bradman could purchase 2 properties in Miami, Florida.
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.