Leawood Attorney Sentenced to Prison For Federal Tax Evasion

KANSAS CITY, KAN. – A Leawood attorney was sentenced today to 18 months in federal prison for concealing his assets and income in an effort to keep the Internal Revenue Service from collecting more than $132,000 in taxes he owed, U.S. Attorney Stephen McAllister said. The defendant also was ordered to pay restitution of slightly more than $202,000, which includes penalties and interest.

David B. Mandelbaum, 58, Leawood, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he owed more than $132,000 from the 2005, 2006, 2007, 2009 and 2010 tax years. He concealed his assets and income from the IRS by setting up bank accounts under other identities and making false statements. He also kept personal money in a trust account that was supposed to include only funds belonging to clients, in order to hide that money from the IRS.

McAllister commended the Internal Revenue Service and Assistant U.S. Attorney Leon Patton for their work on the case.