Urbana, Ill. – A former Champaign, Ill. businessman, Michael Fogerson, has been sentenced to 27 months in prison for filing false income tax returns. On Friday, U.S. District Judge Harold A. Baker further ordered that Fogerson, 52, serve one year of supervised release following his release from prison. Fogerson was ordered to report on July 20, 2015, to the federal Bureau of Prisons to begin serving his sentence. Fogerson was also ordered to pay restitution in the total amount of $465,211 to the IRS, as well as a $200 special assessment.
On March 17, 2015, Fogerson, pleaded guilty to two counts of filing false income tax returns. According to court records, Fogerson was the owner, sole proprietor, and operator of The Smoke Shack in Champaign, Ill., and The Smoker’s Den in Decatur, Ill. During 2009, 2010, and 2011, The Smoke Shack sold tobacco-related products, as well as synthetic marijuana prior to its regulation by state and federal authorities. For tax years 2009 and 2010, Fogerson sold bulk quantities of synthetic marijuana to tobacco product stores similar to The Smoke Shack that operated outside of the Champaign and Decatur area. Fogerson admitted that he failed to report to the IRS the profits generated from these bulk sales.
The case was prosecuted by Assistant U.S. Attorney Eugene L. Miller. The charges were investigated by the Internal Revenue Service Criminal Investigation Division.