Business Owner Convicted Of Tax Fraud
PHILADELPHIA - Jonathon Felix, 52, formerly of Villanova, PA, was convicted today by a federal jury on charges that he willfully filed false federal income tax returns for years 1999 through 2002. Felix owned and operated United Professional Plans, Inc. (“UPPI”). UPPI was a third-party administrator of dental plans for labor union health and welfare funds. The corporation processed dental claims and resolved disputes between labor union members and dental providers, receiving a management fee from the health and welfare funds for its services. According to testimony and evidence presented at trial, Felix removed significant funds from the company in various ways between 1999 and 2002, causing the failure of UPPI. Felix deposited those funds into his personal accounts or used those business funds for personal expenditures and then signed and filed false income tax returns for those years, substantially under-reporting his income and not disclosing the funds he appropriated from UPPI. The resulted in a tax loss to the IRS of approximately $390,000. He was convicted of all four counts contained in the superseding indictment.
U.S. District Court Judge Petrese Tucker scheduled a sentencing hearing for August 23, 2012. Felix faces a maximum sentence of 12 years in prison, a fine of up to $1 million dollars, and a special assessment of $400.
United States Attorney Zane David Memeger and Assistant Attorney General Kathryn Keneally, of the Justice Department’s Tax Division, thanked special agents of IRS - Criminal Investigation Division and the Labor Department’s Office of Inspector General, who provided valuable assistance in conducting the investigation. The case was prosecuted by Tax Division Trial Attorney Patrick J. Murray and Assistant U.S. Attorney Floyd Miller.
UNITED STATES ATTORNEY'S OFFICE, EASTERN DISTRICTof PENNSYLVANIA
Suite 1250, 615 Chestnut Street, Philadelphia, PA 19106
PATTY HARTMAN, Media Contact, 215-861-8525