Littleton Couple Convicted of Income Tax Evasion and Bankruptcy Fraud Following Two-Week Trial
DENVER -- Acting United States Attorney Bob Troyer and IRS Criminal Investigation (IRS-CI) Special Agent in Charge Steven Osborne announced that today a jury found Daryl F. Yurek, age 62, and Wendy M. Yurek, age 62, both of Littleton, Colorado guilty of tax evasion and bankruptcy fraud. The guilty verdicts were the result of a two-week trial before U.S. District Court Judge William J. Martinez. The jury deliberated for approximately 3 hours before reaching their verdict. The Yurek’s, who were indicted by a federal grand jury on October 7, 2015, were allowed to remain free on bond until their sentencing by Judge Martinez. Daryl Yurek’s sentencing is scheduled for December 14, 2017 at 9:30 a.m., and Wendy Yurek’s sentencing is scheduled for December 15, 2017 also at 9:30 a.m.
According to the indictment and evidence presented at trial, Daryl Yurek was a partner in Bolder Venture Partners from 1999 through 2012, and Wendy Yurek was a partner from 2008 through 2012. Daryl Yurek acted as a consultant to start-up and growing companies and provided a variety of services, including temporary management and fundraising. Daryl Yurek also exerted significant control over other companies, including ID Watchdog, and Veracity Credit Consultants.
The Yureks reported tax due and owing for tax years 1999 and 2004 of $624,127 and $53,978, respectively. In 2006, the Yureks submitted an Offer in Compromise to the IRS attempting to settle their tax obligation for $75,000. With the Offer in Compromise, the Yureks indicated the reason for the offer was “Doubt as to Collectability – ‘I have insufficient assets and income to pay the full amount.’”. Later, in September 2010, the Yureks filed with the United States Bankruptcy Court in the District of Colorado a Voluntary Chapter 7 Bankruptcy Petition. During the bankruptcy proceeding, Daryl Yurek testified that their primary reason for pursuing bankruptcy was "the $1.2 million that the IRS wants."
However, during the period the Yureks claimed to be unable to pay their tax liability, the Yureks caused Bolder Venture Partners and Veracity Credit Consultants to pay substantial personal expenses for the Yureks. In March, 2006, the Yureks purchased a downtown Denver loft as their personal residence for $1.3 million in the name of one of their sons. Between 2006 and 2011, Veracity Credit Consultants made mortgage payments of $526,511.99 for the Yureks’ loft, while Bolder venture Partners paid $43,866 for the loft’s Condo Association Fees. Additionally, between 2006 and 2010, Veracity Credit Consultants made $115,719 in rental payments for a vacation home in Tabernash, Colorado used by the Yureks. Daryl Yurek’s Pinehurst Country Club membership and associated expenses paid by Veracity Credit Consultants between 2007 and 2012 totaled approximately $90,810.74.
Furthermore, the Yureks committed numerous affirmative acts of evasion, including submitting false statements to the IRS on IRS Forms 433-A, IRS Collection Information Statement for Wage Earners and Self-Employed Individuals, as well as Daryl Yurek transferring shares he held in ID Watchdog to Veracity Credit Consultants and to his sons while falsely claiming to the IRS that he had not made any transfers for less than full value.
This case was investigated by IRS Criminal Investigation. Daryl Yurek faces up to 5 years in prison per count for tax evasion, bankruptcy fraud and false oath in connection with bankruptcy, as well as up to 3 years in prison for making and subscribing to a false document. Wendy Yurek faces up to 5 years in prison per count for tax evasion and bankruptcy fraud.
This case was prosecuted by Assistant United States Attorneys from the U.S. Attorney’s Office’s Economic Crimes Section, including Pegeen D. Rhyne, with Assistant United States Attorney Tonya Andrews assisting on the asset forfeiture.