Pennsylvania Periodontist Indicted for Tax Fraud and Obstructing the IRS
A federal grand jury sitting in Scranton, Pennsylvania, returned a superseding indictment today, charging a Forty Fort, Pennsylvania periodontist with one count of corruptly endeavoring to obstruct and impede the due administration of the internal revenue laws and two counts of filing false tax returns, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
According to the allegations in the superseding indictment, Dr. Charles Musto filed false tax returns with the Internal Revenue Service (IRS) for the years 2008, 2009 and 2010 that underreported gross receipts of his periodontal practice. During these years, Musto, who also owned rental real estate in the area, deposited gross receipts of his periodontal practice into multiple personal bank accounts, but only provided his accountant with the gross receipts that were deposited into the business bank account. Musto also caused his personal expenditures to be falsely classified as business expenses in the books and records of the periodontal practice and the rental real estate business.
If convicted, Musto faces a statutory maximum sentence of three years in prison for each count. He also faces substantial monetary penalties and a term of supervised release.
An indictment merely alleges that crimes have been committed and defendants are presumed innocent until proven guilty beyond a reasonable doubt.
Acting Assistant Attorney General Ciraolo thanked special agents of IRS-Criminal Investigation, who investigated the case, and Trial Attorneys Shawn T. Noud and William Guappone of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.