Allentown Couple Convicted of Conspiracy and Tax Evasion
PHILADELPHIA – Paul F. Basile, age 55, and Barbara Basile, age 54, both of Allentown, PA, were convicted today by a federal jury of conspiracy to defraud the United States, tax evasion, and filing false tax returns, announced United States Attorney Zane D. Memeger and Principal Deputy Assistant Attorney General John A. DiCicco of the Justice Department’s Tax Division. In addition to conspiracy and two counts of filing false returns, Paul Basile was convicted of five counts of tax evasion, and Barbara Basile was convicted of two counts of tax evasion and two counts of failing to file tax returns. Both defendants were immediately taken into custody. Sentencing for Paul Basile is scheduled for April 10, 2011, and sentencing for Barbara Basile is scheduled for April 11, 2011, both before U.S. District Court Judge Paul S. Diamond.
The Basiles owned a chiropractic business called Lehigh Valley Non-Surgical, Inc. (“LVNS”) and earned income through payments from patients and from health insurance companies. According to evidence introduced at trial, between early 2003 and December 31, 2005, Paul and Barbara Basile removed themselves from LVNS’s payroll system and paid themselves with weekly checks from LVNS or another entity they controlled called Hamilton Health Management in order to avoid paying income and payroll taxes. Paul Basile also earned income from tutoring and coaching work that he performed as a consultant for a company called Breakthrough Coaching, LLC, as well as for consulting services he provided to a company called Corporate Health of America, LLC. Payments from Breakthrough Coaching and Corporate Health of America were paid to another entity the Basiles controlled called Nylad, Ltd. Between 2002 and 2005, the evidence at trial demonstrated that the Basiles owed approximately $150,000 in taxes.
The evidence also showed that between October 18, 2004 and January 4, 2005, Paul Basile defrauded the IRS by issuing checks totaling $1,351,380 from a closed bank to cover tax liabilities that he and his wife owed for tax years 1995 through 2001. Around the same time, he submitted a series of fictitious documents titled, “Prepaid Foreign Bills of Exchange,” also as purported payment of he and his wife’s income tax liabilities.
Paul F. Basile faces a maximum possible sentence of 36 years in prison and a fine of up to $2 million; Barbara Basile faces a maximum possible sentence of 23 years in prison and a fine of up to $1.45 million.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
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PATTY HARTMAN, Media Contact, 215-861-8525