BOSTON - A Las Vegas woman was indicted today in federal court on charges that she conspired to impede the ability of the Internal Revenue Service to collect taxes on $2.7 million in commission payments.
Rosalind Herman, 56, was indicted on conspiracy to defraud the United States and impeding the IRS. Gregg D. Caplitz, 53, of Woburn, was also charged with conspiracy and with impeding the IRS. He previously had been charged with five counts of filing false tax returns.
The government alleges that from 2003 through 2007, Caplitz received $2.7 million in commission payments for his work selling insurance policies and other investment products to clients. Caplitz allegedly signed over most of the commissions to corporations controlled by Herman. She, in turn, paid Caplitz from the corporate accounts, but did not report those payments to the IRS, nor did she fully report the commission income Caplitz had diverted to the corporations. Additionally, Herman and Caplitz are accused of claiming false business expenses on the corporate returns so little or no tax was paid on the commission income.
If convicted on these charges, Caplitz and Herman each face up to five years in prison on the conspiracy count, to be followed by three years of supervised release, and a fine of up to $2.4 million. The maximum penalty for impeding the IRS and for filing false tax returns is three years in prison, to be followed by one year of supervised release and a fine of up to $2.4 million.
United States Attorney Carmen M. Ortiz and William P. Offord, Special Agent in Charge of Internal Revenue Service’s Criminal Investigation in Boston made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
The details contained in the indictment are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.