Westchester Neurologist Sentenced To Prison For Tax Fraud
Preet Bharara, the United States Attorney for the Southern District of New York, announced that DAVID S. YOUNGER, a neurologist with a private medical practice in Manhattan, was sentenced yesterday in Manhattan federal court to four months in prison for tax fraud in connection with his falsely classifying and deducting, in 2007 and 2008, over $580,000 in personal expenses – including golf and country club dues, property taxes for his home, and the purchase of a Mickey Mantle baseball card – as business expenses attributable to his medical professional corporation. YOUNGER pled guilty on May 19, 2016, before United States District Judge Jed S. Rakoff, who also imposed sentence.
According to the Information and statements made in open court:
YOUNGER, a resident of Westchester County, is a board-certified neurologist engaged in private medical practice in Manhattan through the David S. Younger M.D., P.C. professional corporation (the “Younger P.C.”). In 2007 and 2008, Younger filed both personal tax returns on behalf of himself and his wife, and corporate tax returns on behalf of the Younger P.C. In 2007, YOUNGER used approximately $250,000 of corporate funds to pay personal expenses, and in 2008, YOUNGER used approximately $335,000 of corporate funds to pay personal expenses. YOUGNER caused all of these expenses falsely to be recorded as business expenses such as medical supplies, office expenses, and professional fees in the books and records of the Younger P.C. YOUNGER caused these expenses falsely to be deducted from income on tax returns of the Younger P.C., and YOUNGER also fraudulently omitted these personal expenses as income on his personal tax returns.
Among the personal expenses that YOUNGER falsely categorized as business expenses and deducted on his corporate tax returns in 2007 and 2008 are the following: approximately $100,000 in fees to a private golf and country club, approximately $53,000 in property taxes for YOUGNER’s residence, a $4,300 placement fee for a nanny/housekeeper, approximately $17,000 for the construction of an electric gate at YOUNGER’s residence, $345 for a Mickey Mantle baseball card, approximately $26,000 for the restoration of a piano that was picked up from and delivered to YOUNGER’s residence, approximately $37,000 for a vendor to perform construction work at YOUNGER’s residence, approximately $18,000 for furniture delivered to YOUNGER’s residence, and at least approximately $20,000 of airfare for members of YOUNGER’s family.
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In addition to his prison sentence, YOUNGER, 62, of Scarsdale, New York, was ordered to pay a fine of $25,000 and restitution to the IRS to be determined.
Mr. Bharara praised the work of the Internal Revenue Service, Criminal Investigation.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Richard Cooper is in charge of the prosecution.