Morris County, New Jersey, Plastic Surgeon Found Guilty Of Evading Taxes On More Than $5 Million In Income
For Immediate Release
U.S. Attorney's Office, District of New Jersey
NEWARK, N.J. – A plastic surgeon with a practice in Basking Ridge, New Jersey, was convicted today by a federal jury of fraudulently diverting millions in corporate earnings for his personal use, costing the United States nearly $3 million in tax revenue between 2006 and 2010, U.S Attorney Paul Fishman announced.
David Evdokimow, 55, of Harding Township, New Jersey, was convicted of all eight counts of a superseding indictment charging him with one count of conspiring to defraud the United States, four counts of personal income tax evasion and three counts of corporate tax evasion. He was convicted following three-week trial before U.S. District Judge Noel L. Hillman in Camden federal court. The jury deliberated for a day before returning the verdict.
According to the superseding indictment and evidence at trial:
Evdokimow ran his medical practice through a corporation called De’Omilia Plastic Surgery P.C. (De’Omilia). He conspired with others to conceal millions of dollars of taxable income from the IRS by forming shell corporations and then having trusted associates open bank accounts for those corporations. Evdokimow then convinced these trusted associates to give him their signatures or signature stamps so that he had full access to the shell company bank accounts while at the same time being able to conceal his connection to those accounts. He and the other conspirators then funneled millions of dollars in De’Omilia income into the bank accounts of the shell corporations and falsely claimed that these transfers were legitimate business expenses. Evdokimow also used bank accounts in the name of De’Omilia to pay his personal expenses, and falsely claimed those were business expenses too.
Evdokimow used the shell corporation and De’Omilia bank accounts to pay for more than $5.8 million in personal expenses, including designer apparel, jewelry, vacations, artwork, and multiple residences, all of which he falsely claimed as business expenses.
Evdokimow also opened accounts at several banks in order to cash checks received directly from patients for professional medical services. Between 2009 and 2011, Evdokimow cashed over $360,000 in checks from patients, which he failed to report on his federal income tax returns.
Evdokimow was convicted of concealing over $5.8 million in income from tax years 2006 to 2010. By concealing this income, Evdokimow evaded paying almost $3 million in taxes during that period.
Each of the counts with which Evdokimow is charged carries a maximum potential penalty of five years in prison and a $250,000 fine. Sentencing is scheduled for Feb. 24, 2016.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Acting Special Agent in Charge Jonathan D. Larsen, with the investigation leading to today’s verdict.
The government is represented by Assistant U.S. Attorneys Paul Murphy and Justin Herring of the U.S. Attorney’s Office Criminal Division in Newark.
Defense counsel: James Kridel Esq., Clifton, New Jersey
Updated November 18, 2015