Accountant Pleads Guilty to $8 Million Tax Fraud

PHILADELPHIA – United States Attorney David Metcalf announced that Rodney Ermel, 71, of Colorado entered a plea of guilty today before United States District Court Judge Mark Kearney on charges of tax evasion and conspiracy to defraud the United States.

According to court documents and statements made in court, Ermel owned and managed a Colorado-based accounting firm. Along with co-defendant Kenneth Bacon, Ermel provided accounting and tax preparation services for co-defendant Joseph LaForte, LaForte’s wife and co-defendant Lisa McElhone, and their business entities. Ermel conspired with LaForte, Bacon, and others to hide approximately $20 million in income.

He did this through various fraudulent accounting practices, such as fabricating shareholder loans and “bad debt” deductions. Ermel also filed tax returns which he knew underreported taxable income by over $20 million between 2016 and 2018. Ermel’s fraud caused a loss to the United States of over $8 million.

Ermel is the fourth defendant to plead guilty to criminal conduct related to this tax scheme. Sentencing is scheduled for September 3.

The FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General are investigating the case.

Assistant U.S. Attorneys Matthew Newcomer and John J. Boscia for the Eastern District of Pennsylvania and Trial Attorney Ezra Spiro of the Justice Department’s Tax Division are prosecuting the case.