FOR IMMEDIATE RELEASE
March 8, 2012
CAMDEN, N.J. – A doctor from Burlington County, N.J., today admitted evading taxes on income diverted from his medical practice for his personal use, U.S. Attorney Paul J. Fishman announced.
Scott Salkind, 58, of Medford, N.J., pleaded guilty before Chief U.S. District Judge Jerome B. Simandle in Camden federal court to an Information charging him with one count of income tax evasion.
According to documents filed in this case and statements made in court:
From 2005 through 2008, Salkind, a licensed doctor of osteopathy, failed to report more than $1 million of income on his federal income tax returns by diverting corporate business receipts into a shell company bank account under his control. He then withdrew the money by purchasing cashier’s checks payable to himself and used the money to pay personal expenses.
Salkind owns and operates three offices in New Jersey, where he practices medicine under the name General Medical of New Jersey Inc. (General Medical). He does not participate in any insurance company plan or belong to any insurance company network of doctors. Instead, Salkind has an agreement with his patients that he will submit an insurance claim to the patient's medical insurance company for the services provided and accept whatever amount the insurance company paid as payment in full. He will not charge his patients a copayment, any deductible or for any services the insurance company did not pay. Payments from the insurance company were either made payable to General Medical and were mailed directly to the practice or they were made payable and mailed directly to the patient. Salkind instructed his patients that when they received an insurance payment check they should give it to him.
Salkind maintained a business checking account at Wachovia Bank in the name of General Medical, where he deposited his business income. Deposits into this account consisted of insurance payment checks payable to General Medical. The deposits into this account were used to arrive at gross receipts reported on the General Medical corporate income tax returns for 2005 through 2008. Salkind also maintained a business bank account in the name of a fictitious company, into which he also deposited insurance payment checks. When the insurance checks cleared, he withdrew the money by writing checks to himself to purchase cashier checks made payable to himself.
The charges to which Salkind pleaded guilty carry a maximum potential penalty of five years in prison and a fine of up to $250,000. Sentencing is scheduled for June 22, 2012.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge JoAnn Zuniga, for investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Robert Agre Esq., Haddonfield, N.J.