Anesthesiologist Pleads Guilty to Filing False Tax Returns
RICHMOND, Va. – George Anderson, 57, an anesthesiologist from Farmville, Va., pled guilty today to two counts of filing a false corporate and false individual income tax return.
Neil H. MacBride, United States Attorney for the Eastern District of Virginia, Kathryn Keneally, Assistant Attorney General of the Justice Department’s Tax Division, and Eric C. Hylton, Acting Special Agent in Charge of the Internal Revenue Service Criminal Investigation’s Washington, D.C., Field Office, made this announcement after the plea was accepted by United States Magistrate David J. Novak.
Anderson is facing a maximum exposure of six years in prison when he is sentenced on September 14, 2012, by Chief United States District Judge James R. Spencer.
According to court records, Anderson was the sole owner of Farmville Anesthesia Associates, Inc. He attempted to reduce his business tax liability to zero by diverting income to sham entities, such as trusts; deducting the diverted payments on the business’s tax returns; and not reporting the personal use of the diverted funds on his personal tax returns.
Beginning in 2001, Anderson paid hundreds of thousands of dollars worth of bogus expenses out of Farmville Anesthesia’s bank accounts to bank accounts held in the names of trusts and limited liability companies Anderson himself controlled. He then falsely deducted these payments on Farmville Anesthesia’s corporate income tax returns. Later, Anderson spent substantial funds out of the nominee bank accounts for his personal benefit, including for the construction of his personal residence and did not report this income on his personal tax returns. In his guilty plea, Anderson admitted that he filed a false 2007 corporate income tax return on behalf of Farmville Anesthesia Associates. He also admitted to filing a false 2005 personal income tax return.
This case was investigated by agents of the IRS-CI. Trial Attorney Jonathan R. Marx of the Department of Justice, Tax Division and Assistant United States Attorney David T. Maguire are prosecuting the case on behalf of the United States.
A copy of this press release may be found on the website of the United States Attorney's Office for the Eastern District of Virginia at http://www.justice.gov/usao/vae. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia at http://www.vaed.uscourts.gov or on https://pcl.uscourts.gov.
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