Former CFO of Russian Natural Gas Company Sentenced to More Than Seven Years in Prison for Tax Crimes
A Las Vegas, Nevada, tax return preparer was sentenced to 40 months in prison yesterday for tax fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Nicholas A. Trutanich for the District of Nevada.
According to court documents and statements made in court, Michael A. Sandoval provided payroll and tax preparation services for individuals and companies through his Las Vegas business Nevada Financial Solutions Inc. (NFS). When two of Sandoval’s clients provided NFS with $471,178 in payments to be forwarded to the Internal Revenue Service (IRS) as money due for their quarterly employment taxes, Sandoval did not provide those payments to the IRS, but instead spent the funds for his personal benefit. At NFS, Sandoval also filed and caused the filing of false individual income tax returns for a substantial number of clients by reporting fraudulent deductions, including false Schedule C business losses, charitable contributions, and state and local tax deductions. These fraudulent deductions caused a tax loss of over $2.8 million. On his own individual tax returns, Sandoval fraudulently understated his income from NFS for the years 2010 through 2017, causing an additional tax loss of $100,138. In total, Sandoval caused a tax loss totaling $3,425,654 to the IRS.
Sandoval previously pleaded guilty to one count each of tax evasion, aiding and assisting in the preparation and filing of a false tax return, and making and subscribing a false tax return.
In addition to the term of imprisonment, U.S. District Court Judge Gloria M. Navarro ordered Sandoval to serve three years of supervised release and to pay restitution of $281,630 to a client and of $100,138 to the United States.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Trutanich thanked special agents of IRS-Criminal Investigation, who conducted the investigation, and Trial Attorneys Thomas W. Flynn and Eric C. Schmale of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.