You are here

Justice News

Department of Justice
U.S. Attorney’s Office
Southern District of Florida

FOR IMMEDIATE RELEASE
Thursday, April 12, 2018

Florida Escort Service Owner Pleads Guilty to Underreporting Income

A Miami escort service owner pleaded guilty today to filing a false tax return, announced U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida and Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division. 

According to court documents, Dennis Zarudny, 40, filed a false individual income tax return for 2011 that underreported his total income from his escort business, Denzar Inc., which did business as “Elite Escort Service” in the Miami area.  Zarudny’s escort service was marketed on the internet as a “prestigious escort agency providing 24 hour outcall escort services & adult entertainment for upscale gentlemen and couples in South Florida.” 

For tax years 2011 through 2014, Zarudny filed false corporate and personal income tax returns with the IRS, which substantially underreported his business’ income.  Zarudny allowed his customers to pay for the escorts’ services by cash, check, and credit card.  Zarudny reported income from credit card transactions, but did not fully report the income he received from customers who paid in cash and check.

U.S. District Judge Jose E. Martinez scheduled sentencing for June 11.  Zarudny faces a statutory maximum sentence of three years in prison, as well as a period of supervised release, monetary penalties and restitution. 

U.S. Attorney Greenberg and Principal Deputy Assistant Attorney General Zuckerman commended special agents of IRS Criminal Investigation, who investigated the case, and Assistant U.S. Attorney Joshua Rothstein and Tax Division Trial Attorney Grace Albinson, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.

Topic(s): 
Tax
Updated April 13, 2018