July 30, 2021

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Virginia Beach Businessman Pleads Guilty to $2.5 Million Tax Fraud | USAO-EDVA

NEWPORT NEWS, VA. – A Virginia Beach man pleaded guilty today to defrauding the IRS of more than $ 2.5 million in taxes by, among other things, hiding assets, making false statements about his solvency, and using a nominated company to do business and huge Divert sums of money to pay creditors in lieu of the IRS.

“The defendant tried to evade paying taxes in excess of $ 2.5 million and instead used his illicit profits for personal expenses such as a home by the sea, luxury travel and yacht club fees,” said Raj Parekh, US reigning officer – Attorney for the East District of Virginia. “EDVA is committed to holding those who try to defraud the system to account instead of paying their fair share.”

According to court records, Richard Yanek, 52, has owned and operated a credit card company since at least 1995. Between 2013 and 2018, Yanek withheld payroll taxes from its employees, but did not consistently pay more than $ 1 million of those withholding to the IRS. Every year, Yanek provided its employees with fake tax forms who filed their own taxes and mistakenly believed that the amounts withheld from their wages had been paid to the social security program.

Yanek hadn’t filed a personal income tax return or paid personal income taxes since 2010, despite making and spending millions of dollars on the mortgage for his oceanfront home, personal credit cards, private school tuition, and golf and yacht club fees. Yanek had his accountant prepare his personal tax returns for 2011-2015, all of which reported significant taxes due and owed. However, Yanek made a deliberate decision not to file these returns with the IRS and later provided false information to the IRS and law enforcement agencies when asked why these returns had not been submitted.

Yanek is due to be sentenced on September 27th. He faces a maximum sentence of five years in prison. A federal district judge will decide each sentence based on U.S. sentencing guidelines and other legal factors.

Raj Parekh, U.S. Acting Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Washington, DC Field Office’s special representative in charge, IRS-Criminal Investigation (IRS-CI) announced this after U.S. District Judge Raymond A. Jackson accepted the request.

Assistant US attorneys Mack Coleman and Howard Zlotnick are pursuing the case.

A copy of this press release is available on the website of US law firm for the Eastern District of Virginia. Related court documents and information can be found on the website of the District Court for the Eastern District of Virginia or further PACEMAKER by finding Case No. 4: 21-cr-26.