Doctor Sentenced to Probation with Community Confinement for Filing False Tax Returns
PITTSBURGH - A Pittsburgh-area physician was sentenced today in federal court to five years probation with nine months community confinement at Renewal, Inc., followed by nine months home detention, on his conviction of filing a false tax return, United States Attorney David J. Hickton announced today.
United States District Court Arthur J. Schwab imposed sentence upon Neil M. Niren, M.D. As part of his sentence, Niren was fined $40,000 and ordered to pay restitution in the amount of $451,001.
According to information presented to the court, Niren, who operated his medical practice as a sole proprietorship, knowingly filed a false income tax return for 2005. Niren also accepted responsibility for filing false tax returns for years 2006 through 2008. Niren maintained two sets of accounting books and knowingly concealed payments received directly from patients. For each of the tax years, 2005, 2006, 2007 and 2008, Niren falsely claimed thousands of dollars of personal expenses as business expenses of his medical practice, including a Bahamas vacation at the Atlantis Resort, apartment furniture, custom jewelry, fine art from the Adi Tobenhouse Gallery in Israel, cosmetic surgery, a gym membership, appliances for Niren's rental property in Pittsburgh and interior design work for Niren's New York apartment.
Assistant United States Attorney Mary McKeen Houghton and Department of Justice Tax Division Trial Attorney Jed Silversmith prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Internal Revenue Service, Criminal Investigation, leading to the successful prosecution of Niren.