Posts Tagged ‘dental fraud’
Area dentist indicted on tax fraud charges
Two area dentists, one with a practice in Wilmington, were arrested on charges they evaded taxes, conspired to defraud the IRS, and applied false documents worth billions of dollars, following an indictment by a federal court.
The indictment, released July 22, alleges the dentists falsified documents, such as securities, in February 2008 that “purported” to pay the government about $38.8 billion.
The men then asked for $9.6 billion as a tax refund, the indictment alleges.
The dentists had been under criminal investigation since 2005, following a 2004 tax audit, according to court documents.
The indictment alleges Bruce A. Mrusek, a Maineville resident, conspired with Bradley C. Brennecke, a dentist who lives in Pleasant Plain and practices in Goshen. The two allegedly helped each other create and mail fraudulent tax returns and documents.
Mrusek’s practice is Wilmington Dental Management Services, at 260 West Locust St. Mrusek is also charged with filing false business tax returns.
According to the indictment, Mrusek’s fake payments to the IRS and/or the U.S. Treasury total about $19.2 billion. Brennecke allegedly made $19.65 billion in fake payments. It was not clear Monday how much over or under their actual tax bills these payments totaled.
The conspiracy of alleged tax evasion continued from 1998 until the time of the indictment, Wednesday, according to court documents.
Neither defendant nor their offices could be reached for comment, and the indictment did not list their attorneys’ names. The answering machine at the office of Wilmington Dental states regular business will resume Aug. 3 following a current break for vacation.
Mrusek and Brennecke both appeared in federal court in Cincinnati on Thursday, in front of U.S. Magistrate Judge Timothy S. Hogan, according to the U.S. Department of Justice, the agency prosecuting the case.
Mrusek and Brennecke’s arraignment will be at 1:30 p.m. Aug. 12, in U.S. District Court in Cincinnati.
According to a press release by the Department of Justice, Mrusek faces a maximum prison term of 79 years and a maximum fine of $2.25 million, if convicted on all counts. Similar maximum sentences for Brennecke are 75 years and a $1.75 million fine.
Charles Miller, a representative of the Department of Justice, said that sentencing is entirely at the discretion of the judge, Magistrate Judge Timothy S. Black. There is no minimum sentence mandated by law, Miller said.
The indictment detailed that the men have previously questioned their role as contributors to the revenue of the U.S. Treasury. The following situations are taken from the 29-page indictment released Wednesday:
In August 2004, both defendants sent correspondence to their auditing agents “requesting that she ‘produce the statute and implementing regulation‘ that was relied upon to determine that (they were) … ‘taxpayer(s)’.”
In September 2004, Mrusek and Brennecke sent correspondence to their auditing agents “denying, among other things, that (they were) … ‘person(s)’ with respect to the Internal Revenue laws.”
Also in September 2004, the defendants sent correspondence to their auditing agents “requesting the definition of an ‘Internal Revenue Agent.’”
