Former NYPD Officer Pleads Guilty To Tax Fraud
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and Jonathan D. Larsen, Special Agent in Charge of the New York Office of the Internal Revenue Service, Criminal Investigation Division (“IRS-CI”), announced that ALFRED FERATOVIC pled guilty today in Manhattan federal court to fraudulently under-reporting income in his United States individual income tax returns between 2012 and 2017, while employed as an officer for the New York City Police Department (“NYPD”). FERATOVIC, who is no longer with the NYPD, was arrested and charged in connection with this offense in June 2019, and he pled guilty today to aiding the preparation of fraudulent tax returns before United States District Judge Ronnie Abrams.
Manhattan U.S. Attorney Berman said: “Alfred Feratovic admitted today that while enforcing the laws as an NYPD officer, he was violating the law himself by falsifying his tax records and failing to report hundreds of thousands of dollars in income. Our Office is committed to demonstrating that no one is above the law, and that tax fraud is a serious offense that we will prosecute to the fullest extent of the law.”
Special Agent in Charge Jonathan D. Larsen said: "As a New York City police officer, Mr. Feratovic betrayed the public trust by not paying his fair share in taxes. Nobody is above the law and IRS-CI will continue to investigate individuals who underreport rental income."
According to the allegations set forth in the Information filed against FERATOVIC in Manhattan federal court, and statements made in court proceedings, including FERATOVIC’s guilty plea hearing:
Between 2012 and 2017, FERATOVIC was employed as a police officer, and received income from his employment with the NYPD. FERATOVIC also owned and operated residential rental properties from which he derived significant personal income. He reported rental income from those properties on his U.S. federal income tax returns. In particular, FERATOVIC owned and operated more than 10 rental properties in New York and Connecticut. Rental income he received from those properties was reported to the IRS on certain schedules and filings in FERATOVIC’s tax returns, which he participated in preparing and filing with the IRS.
For each of the tax years 2012 through 2017, FERATOVIC falsely reported to his tax return preparer, and caused to be reported to the IRS, rental income from his properties in amounts significantly below the true rental income he received. He did so in generally increasing amounts during the relevant years, with the largest under-reporting occurring in 2017, during which he failed to report hundreds of thousands of dollars in rental income.
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FERATOVIC, 39, of Staten Island, New York, pled guilty to one count of aiding the preparation of fraudulent federal tax returns, which carries a maximum sentence of three years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as the sentence of the defendant will be determined by the court.
Mr. Berman praised the outstanding investigative work of the Special Agents of the United States Attorney’s Office for the Southern District of New York and the Internal Revenue Service, and thanked the New York City Police Department for their valuable assistance in the investigation.
This case is being handled by the Office’s Public Corruption Unit. Assistant U.S. Attorney Alex Rossmiller is in charge of the prosecution.