Michigan Resident Pleads Guilty To Structuring A Financial Transaction
A Bloomfield Hills, Michigan resident, pleaded guilty today in Flint, Michigan to one count of structuring a financial transaction to avoid bank reporting requirements, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to court documents, Scott Zack, who entered his plea today, and David Katz, who pleaded guilty on June 12, owned and operated several medical management companies and a chiropractic facility in Michigan, including Health Systems Medical Management, LLC and Medical Management Partners, LLC. In July 2013, Scott Zack and David Katz withdrew cash in amounts of less than $10,000 from multiple bank branch locations in order to avoid the requirement that domestic banks file a currency transaction report for transactions in amounts exceeding $10,000. As part of their pleas, Zack and Katz acknowledged that during the period of their scheme their unlawful conduct involved more than $250,000.
In a related case, John Anthony Capella of Lantana, Florida pleaded guilty on May 29 to conspiracy to defraud the United States. According to court documents filed in that case, Capella did so by causing, for example, businesses he controlled to file false documents with the IRS, including a tax return that underreported substantial cash receipts.
Honorable Lisa V. Parker scheduled sentencing for February 19, 2019. Katz and Zack each face a maximum sentence of five years in prison, as well as a period of supervised release, restitution and monetary penalties.
Capella faces a maximum sentence of five years in prison, a $250,000 fine and three years of supervised release for conspiring to defraud the United States.
Acting Deputy Assistant Attorney General Goldberg thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Mark McDonald and William Guappone, who prosecuted this case. Acting Deputy Assistant Attorney General Goldberg also thanked the United States Attorney’s Office for the Eastern District of Michigan for its substantial assistance during the investigation.
More information about the Tax Division’s enforcement efforts is available on the Division’s website.