Michigan Defendant Pleads Guilty to Conspiracy to Defraud the IRS and Steal From an Organization Receiving Federal Funds

A Boca Raton, Florida, resident pleaded guilty today in Flint, Michigan, to conspiring to impede the lawful functions of the Internal Revenue Service (IRS) and conspiring to steal from an organization receiving federal funds, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.

According to court documents, from January 2013 through December 2017, Scott Jawetz and his co-defendants executed a scheme, using the company Blue Horseshoe Consulting Inc. (Blue Horseshoe), to obtain police reports, stolen from the Detroit Police Department, which contained automobile crash victim information. Jawetz and his co-conspirators used the stolen information to solicit automobile accident victims for medical and chiropractic services. Jawetz and his co-conspirators also underreported to the IRS gross receipts they received from Blue Horseshoe business operations and the total wages Blue Horseshoe paid to its employees.

United States District Court Judge Matthew F. Leitman scheduled sentencing for Jawetz for Jan. 15, 2020. Jawetz faces a maximum sentence of five years in prison and a $250,000 fine on each of the two conspiracy counts. Jawetz also faces a period of supervised release, restitution, and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS-Criminal Investigation and the Federal Bureau of Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who are prosecuting the case.

Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.