KC Real Estate Agent Sentenced for Tax Evasion

 

KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., real estate agent was sentenced in federal court today for tax evasion.

Joseph R. Fulgenzi, 54, of Kansas City, was sentenced by U.S. District Judge Greg Kays to three years and 10 months in federal prison without parole. The court also ordered Fulgenzi to pay over $400,000 in restitution.

On Aug. 1, 2012 Fulgenzi pleaded guilty to tax evasion. Fulgenzi admitted that he owed substantial income tax that he avoided reporting. Between 1992 and 2007, according to the plea agreement, Fulgenzi had $672,447 in unreported income. The total criminal computation including taxes, penalties, and interest, totals $402,223.

According to his plea agreement, Fulgenzi has been embroiled in non-filing and non-payment issues dating back to the 1980s. Since that time, IRS civil collections has been involved with Fulgenzi. According to court documents, Fulgenzi repeatedly failed to cooperate and comply with court orders during civil collection efforts. Fulgenzi last voluntarily filed a tax return in 1991 for tax year 1990. Although he filed returns from 1982-1990, he has paid no taxes due and owing since 1982.

Fulgenzi admitted that he used his business and domestic partner to impede the IRS’s collection efforts and conceal his assets. For example, in order to conceal his income and assets, Fulgenzi diverted his real estate commissions and other income (such as proceeds from the sale of a rental property) to his partner, through whose bank account all of Fulgenzi’s personal expenses were funneled. Fulgenzi appears to have spent his money on their party lifestyle and trips, according to the plea agreement. The bulk of Fulgenzi’s income appears to have been spent on their home improvements and car payments.

This case was prosecuted by Assistant U.S. Attorney Roseann Ketchmark. It was investigated by IRS-Criminal Investigation.