Former Owner of Malden Chiropractic Practice Sentenced for Federal Tax Fraud
BOSTON – A former owner of a Malden chiropractic practice was sentenced in U.S. District Court in Boston today to filing fraudulent personal federal tax returns and attempting to obstruct the IRS.
Paul E. Jondle, 61, of Salem, N.H., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to one year and one day in prison, two years of supervised release, and ordered to pay $202,270 in restitution. In October 2015, Jondle pleaded guilty to three counts of tax evasion and one count of obstructing the IRS.
Jondle operated a Malden chiropractic practice called Future Health. Jondle, who was barred from working as a chiropractor, used the names and tax identification numbers of licensed chiropractors working at Future Health for billing purposes, causing the insurance company payors to report the payments to the Internal Revenue Service as income to Jondle’s subcontractors. In fact, the payments, mailed to Jondle and deposited into bank accounts that he controlled, were income to Jondle. From 2003 through 2007, Jondle deposited approximately $3 million into his bank accounts, yet he reported no taxable income for those years, and paid no federal income taxes. During those years, Jondle spent hundreds of thousands of dollars on personal expenses including mortgage payments on his home, landscaping, tuition payments and pet spas.
United States Attorney Carmen M. Ortiz and Kristina O’Connell, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made the announcement today. Assistance was provided by the Massachusetts Insurance Fraud Bureau, U.S. Postal Inspection Service and the U.S. Social Security Administration, Office of the Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Rachel Y. Hemani of Ortiz’s Major Crimes Unit and Trial Attorney Jason M. Scheff of the Department of Justice’s Tax Division.