Attorneydiction.com, – Filing fake tax returns ignores more than $2.6 million hidden in attorneys’ trust accounts.
A federal jury convicted Michigan attorney Carl L. Collins, III on November 16 of knowingly filing 5 fraudulent tax returns for himself and his group of businesses.
Collins is a personal injury attorney with offices in Southfield, Michigan. He owns a real estate company, First Third LLC, and 2 health-related companies, MedCity Rehabilitation Services LLC and Alpha Living LLC.
During the trial, evidence convinced Collins not to disclose his substantial income from the business and to invest it in a hidden interest in an attorney’s trust account (IOLTA), a bank account for attorneys – used only to invest in trusts for customers.
Consequently, Collins was able to hide these funds from his tax preparers and the IRS.
Collins was found guilty of filing fraudulent personal tax returns for 2012, 2015 and 2018, filing a fraudulent 2012 tax return, and filing a fraudulent 2015 business return for Alfa Living.
Facts show that Collins does not disclose their earnings up to $600. 000 which he earned in 2012. He kept most of these funds in a hidden IOLTA account and hid the money from his tax authorities.
In his 2015 personal statement, Collins did not disclose earnings of more than $800.000. As part of a bogus 2018 personal income tax return, Collins omitted approximately $300,000 in income that he deposited into another undisclosed IOLTA account. In total, the facts show that Collins’ unreported income exceeded $2.6 million.
Collins is due on March 21, 2023 and is serving a maximum of 3 years in prison for each charge of filing a fraudulent tax return.
He received supervised release, restitution and a fine. A federal district judge will decide on any sentence after considering the US Sentencing Guidelines and other areas of law.
Assistant Deputy Attorney General Stuart Meter. Goldberg of the Justice Department’s Tax Division and Dawn N. Ison US Attorney for the Eastern District of Michigan made the announcement.
The IRS criminal investigation is looking into the matter again.
Tax department attorneys Kenneth Vert and Jeffrey McLellan are still pursuing the case. Attorney Evan Mulbry and litigation expert Eric Mahoney of the Tax Department are assisting in the case.***