Lake Orion Man Pleads Guilty To Tax Evasion
A Lake Orion resident pleaded guilty yesterday to tax evasion charges, United States Attorney Barbara L. McQuade announced. Ms. McQuade was joined in the announcement by Carolyn Weber, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation.
Bret Loren Kelly pleaded guilty before United States District Judge Denise Page Hood in Detroit, Michigan.
According to court records, Brett Kelly was employed as a financial broker. He assisted clients in securing commercial financing. In March of 2008, Kelly told IRS officials that he was destitute. Shortly thereafter, in May of 2008 Kelly opened a bank account in the name of Fidelity Capital Group, LLC (Fidelity). Kelly received approximately $1.8 million in income which he deposited into the Fidelity Bank account. He used this $1.8 million to purchase and renovate a home and two condominiums. He also purchased jet skis, snowmobiles, musical equipment and other assets which he concealed in the Fidelity name as well as another corporate shell called Cambridge North American Holdings out of Nevada. Kelly failed to file a 2007 income tax return. The 2008 and 2009 income tax returns were filed late and income was hidden in the Fidelity entity. In addition, Kelly failed to pay $141,725 in taxes in 2009.
“Kelly thought he had successfully disguised his income by diverting it into an undisclosed account,” said Acting Special Agent in Charge Carolyn Weber. “He should never have underestimated the IRS Criminal Investigators who were able to follow the money and bring him to justice.”
A sentencing hearing was set by Judge Hood for February 27, at 3 p.m. The maximum penalty for tax evasion is imprisonment of not more than five years and a $250,000 fine.
The investigation of this case was conducted by special agents of the IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ross MacKenzie.