In a significant development today, a Florida resident, Roger Whitman, aged 76, admitted guilt to evading close to $2.4 million in taxes linked to his business income.
Court records and statements presented during the court proceedings revealed that Whitman was involved in the manufacturing and sale of medical equipment, resulting in substantial earnings between 2002 and 2018.
Shockingly, Whitman failed to file an individual income tax return or fulfill any tax obligations since the year 2000. The Internal Revenue Service (IRS) took action in 2012, assessing around $800,000 in taxes against Whitman for the tax years spanning 2002 to 2009.
To cloak his income and assets, Whitman devised a deceptive scheme by establishing a trust with his girlfriend as the trustee. Under this arrangement, Whitman instructed his girlfriend to open two bank accounts in the trust’s name, granting her exclusive authority as the sole signatory. Subsequently, Whitman channeled his business earnings into these trust accounts, utilizing the funds to cover personal expenses. To further complicate matters and impede IRS collection endeavors, Whitman went on to create a new entity to operate his business around July 2019.
The ramifications of Whitman’s actions resulted in a staggering tax loss exceeding $2.4 million for the IRS.
Scheduled for sentencing on November 13, Whitman potentially faces a maximum penalty of five years in prison, along with supervised release and monetary fines. The ultimate sentence will be determined by a federal district court judge, who will weigh various factors including the U.S. Sentencing Guidelines and other statutory considerations.