Strict adherence to accounting procedures and guidelines contributes to a large portion of any Pennsylvania business’ success. When one member of an accounting team fails to abide by proper accounting principles and engage in accounting fraud, that person not only compromises him or herself, but the business’ profitability and reputation.
An accountant for the 1950s-themed restaurant, Nifty Fifty’s, which has four locations in Pennsylvania and New Jersey, was recently indicted for engaging in a variety of different fraud and embezzlement schemes over the past several years. In 2008, the man allegedly applied for a mortgage using falsified W-2 and tax return documents. He was able to obtain these forged documents due to his status as an accountant with this restaurant chain, prosecutors said. The man is also suspected of having participated in a scheme with the restaurant’s owners which allowed the owners to avoid paying business and personal taxes.
The accountant, who had been with the company since 1986, was charged with loan fraud, devising false financial transactions, conspiring with the owners and filing fake tax returns for the company. Federal prosecutors on the case claim that he was able to hide over $15.6 million from the Internal Revenue Service.
Participating in a white collar crime like tax evasion and fraud is associated with serious penalties, like heavy fines and prison time in many cases. It may be of great benefit for those who are facing charges like these to work with an attorney who can help devise a strong defense and potentially minimize the consequences of this offense.
Source: Philly.com, “Accountant for Nifty Fifty’s indicted in tax scheme,” Emily Babay, May 16, 2014