Former Suburban Chicago Home Builder Sentenced To 30 Months In Prison For Failing To Pay $1.27 Million In Federal Income Taxes
CHICAGO — A former west suburban home builder was sentenced to 2½ years in federal prison for failing to pay more than $1.27 million in federal income taxes and concealing certain business interests in his personal bankruptcy case. The defendant, DENNIS WEISS, was sentenced after pleading guilty last year to one count each of filing a false federal income tax return and making false statements in a bankruptcy petition.
Weiss, 64, of South Elgin and formerly of St. Charles, owned Custom Homes by D. R. Weiss, Inc., and Reliable Home Solutions, Inc., both formerly located in St. Charles. He was sentenced to 30 months in prison and was ordered to begin serving his sentence in January. He was also ordered to pay $296,643 in restitution to the Internal Revenue Service by U.S. District Judge John Z. Lee, who imposed the sentence yesterday in Federal Court.
According to court documents, Weiss filed false individual federal income tax returns for 2005 through 2009, and he failed to file corporate tax returns for both of his companies. Although he filed corporate tax returns on behalf of Custom for 1999 through 2004, he filed none starting in 2005. Reliable was formed in 2006 and dissolved in 2008, and Weiss never filed a corporate return on its behalf and concealed the company’s existence from his tax preparer.
Between 2005 and 2009, Weiss paid personal expenses from Custom’s business bank account, accepted cash payments from Custom and Reliable customers, and failed to record the receipt of these funds on the books and records of the corporations, resulting in a total federal tax loss of $1,271,280.
On March 10, 2009, Weiss filed a personal bankruptcy petition and intentionally concealed the existence of Melrose Currency Exchange, Inc., which he had owned for several years. In fact, Weiss had reported income from the currency exchange on his individual tax returns for 2005-2009. Court documents also state that Weiss also falsely declared that he had no interest in any partnerships or joint ventures when, in fact, he held interests in three family held entities: Royal Fox Country Club LP, Royal Fox Country Club LP II, and Weiss Private Equity LP. His false bankruptcy petition resulted in the discharge of his debts to approximately 43 trade creditors. (In re Dennis R. Weiss, 09 B 08028.)
The sentence was announced today by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and James C. Lee, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government was represented by Assistant U.S. Attorney Patrick King.
In addition to criminal penalties, defendants convicted of tax offenses remain responsible for any taxes and interest due, as well as civil penalties of up to 75 percent of the tax owed.