What Is Tax Evasion?

Posted on April 17, 2018 by halmgar

Illinois defense attorney, Illinois criminal lawyer, Ilinois criminal statutesTax season is about to come to a close, and many of us are hurrying to get our taxes filed before today’s deadline, the last day of the 2018 tax season. While most of us have either used do-it-yourself (DIY) tax preparation platforms, others have relied on accountants or certified tax professionals to better assist us. Unfortunately, there are some individuals who fail to report certain incomes or documents on their tax return, which could lead to serious consequences.

Definition of Tax Evasion

Tax evasion is when a taxpayer misreports his or her income, credits, and deductions on tax returns, or if the taxpayer does not file a required tax return. Not everyone goes to prison for tax evasion; however, if the taxpayer conceals his or her assets and income that should be used to pay back taxes, more serious consequences may follow.

The Internal Revenue Service (IRS) will mainly look for unreported income, false statements, and deliberately hidden records for criminal investigation.

Example of Tax Evasion

Concealing a side job is one of the biggest red flags for a fraudulent tax return. If an individual has a main job and decides to pursue another job on the side, he or she must report both sources of income. The omission of an entire source of income is a huge indicator of fraud.

When the audit letter arrives for the taxpayer, then he or she must report income earned from the previous year. If the taxpayer only indicates one checking account if he or she really has more than one account, then the taxpayer has omitted an entire source of income, concealed a bank account, and made false statements on the report.

The penalty for criminal tax evasion cases is undesirable. If a taxpayer is caught omitting a source of income, concealment of a bank account, and making a false statement on his or her tax return, then the taxpayer may face jail time of up to five years. If found guilty, he or she must pay back taxes with a high fraud penalty.

Call a Cook County Criminal Defense Attorney

Failing to pay back taxes can lead to serious consequences. If you have been accused of concealing your assets and income, you may lose future employment opportunities and your reputation in the community, and then you may need effective legal representation. At the Law Offices of Hal M. Garfinkel, we will go above and beyond to protect your rights. To schedule a free initial consultation, please call a Chicago criminal defense lawyer at 312-629-0069 to get started on your case.

Source:

https://www.hrblock.com/tax-center/irs/tax-responsibilities/prision-for-tax-evasion/

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Insurance Agent Fraud

Posted on April 10, 2018 by halmgar

Illinois defense attorney, Illinois criminal law, Illinois criminal lawyer,Insurance is very important to have, especially for home, auto, and life. Anything can happen to you, such as a car accident, a house fire, or sudden death. Even though most insurance agents can be trusted, the insurance industry can still be grounds for potential fraud schemes.

Types of Insurance Fraud on the Agent’s End

Over one trillion dollars in premiums are collected by thousands of insurance agencies every year. Because of how big the insurance industry is, there is much opportunity for fraud to occur. The cost of insurance fraud on the agent’s end amounts to over $40 billion every year, and the average American family ends up spending between $400 and $700 in the form of increased premiums.

The most common fraud schemes that insurance agents may commit include but are not limited to:

  • Premium diversion;
  • Fee churning;
  • Asset diversion; and
  • Workers’ compensation fraud.

If a premium diversion occurs, then the insurance agent is embezzling insurance premiums. The most common type of insurance fraud, the insurance agent does not send the premiums to the underwriter and pockets the money for his or her own use. Other forms of premium diversion involve an agent selling insurance without ever holding an insurance license, and the collection of premiums without ever paying claims.

Fee churning consists of commissions taken through the agreements of reinsurance. The first premium is reduced by the repeat in commissions until there is no money left to pay the claim. The company that has to pay the claims is frequently a business that has been set up for failure.

Asset diversion is like premium diversion, only with the theft of insurance company assets as opposed to insurance premiums. This type of fraud scheme often involves the acquisition of control of an insurance company with funds that have been borrowed. Once a purchase has been made, then the offender uses the company’s assets to pay off debt, with the rest of the assets often used for personal use.

In workers’ compensation fraud, some insurance agents will provide this type of insurance at a reduced cost to entice the prospective policyholder, and then misappropriate the funds without ever providing insurance in the event of a workers’ compensation claim.

Call a Chicago Federal Crime Defense Attorney

Insurance agents who commit the act of fraud are sure to see undesirable consequences. If you are an insurance agent and have been convicted of fraud, then effective legal representation is in your best interest. At the Law Offices of Hal M. Garfinkel, our seasoned Chicago federal crimes defense lawyers have represented Cook County area clients in various matters for over 28 years. To schedule a free initial consultation, please call 312-629-0669 to discuss your case.

Source:

https://www.fbi.gov/stats-services/publications/insurance-fraud

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How Can Identity Theft Affect Another Person’s Credit Score?

Posted on April 6, 2018 by halmgar

Illinois defense attorney, Illinois criminal justice system, Illinois criminal lawyer,Identity theft is a very serious crime that can come with unwanted consequences. This type of crime may destroy your life, as you may spend time in jail, pay hefty fines, and even lose future employment opportunities. As for the other person affected by identity theft, he or she may experience in a lowered credit score and may lose all other forms of credibility.

Consequences of Identity Theft on a Person’s Credit Score

If a person has been affected by identity theft, then he or she may experience a harder time applying for credit cards and loans. If a person committing the crime applies for a credit card or any other type of loan using the other person’s name, the chances are very good that he or she will never pay off the balance, or the thief will never make the payments on time. One missed payment on a credit card or loan can easily drop a person’s credit score by over 100 points.

A person committing the identity theft often racks up a high balance on a credit card and does not pay off the debt. He or she often maxes out the amount on the card, and the credit score of the person affected can be lowered by as many as 45 points.

Penalties for Identity Theft

Identity theft of credit or money of value that does not exceed $300 is a Class 4 felony. If the person who commits the crime has been previously convicted of a second or subsequent offense may be charged with a Class 3 felony. Identity theft of credit or money valuing between $300 and $2,000 is a Class 3 felony, and this type of crime of credit or money valuing more than $2,000 but less than $10,000 is a Class 2 felony. A person may be guilty of a Class 1 felony if he or she commits identity theft of credit or money that values between $10,000 and $100,000 altogether. Lastly, identity theft of credit or money of value that exceeds $100,000 is a Class X felony.

Call a Chicago Criminal Defense Lawyer

If you have been charged with identity theft, causing destruction of another person’s credit score, you will need effective legal representation. At the Law Offices of Hal M. Garfinkel, we have protected the rights of our Cook County area clients in various criminal defense matters for over 28 years, so you will be guaranteed a quality experience. To schedule a free initial consultation, please call a Chicago federal crimes defense attorney at 312-629-0669 to discuss your case.

Sources:

http://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=072000050K16-30

https://www.creditcards.com/credit-card-news/how-identity-theft-affects-credit-score.php

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What Is a Job Offer Scam?

Posted on March 28, 2018 by halmgar

Illinois defense attorney, Illinois criminal justice system, Illinois criminal lawyer,After the beginning of the New Year, many employers are starting to hire new employees to help their companies grow. For everyone who is looking for a new job, it is very important to take extra precaution when applying online, since there are many internet crimes that are disguised as job offers. Internet crimes are a very serious offense which can cause undesirable consequences against the person who is accused of the crime.

The Characteristics of a Job Offer Scam

At first glance, the person affected may have a difficult experience in determining whether a suspicious job offer is legitimate or a scam. Many characteristics of a job offer scam include, but are certainly not limited to:

  • The job offer is too good to be true;
  • Vague job requirements and job description;
  • Unprofessional emails;
  • Online interviews via instant messenger or other means of social media;
  • Emails with no contact information;
  • Emails from a personal account;
  • Poor search results for the company where the job offer is coming from;
  • Being asked to provide sensitive information;
  • The company offering to send money or other assets;
  • The company wanting personal account information to transfer money; and
  • The company asking the person receiving the job offer to pay for a good or service.

If the job offer seems too good to be true, then the company probably contacted the person receiving the job offer first, claiming that they had found the person’s resume online, when his or her resume may not have been online. Another indicator is when the company states that the pay is really good for performing basic tasks, such as administrative support.

Another indicator of the job offer being too good to be true includes a quick interview on instant messenger, with the company offering the job within 24 hours.

Most job offer scams include emails that are poorly written, often including many grammatical errors, punctuation errors, and capitalization mistakes.

The biggest indicator of a job offer scam is when the company making the offer asks the person affected for his or her confidential information, including social security number and banking information, potentially resulting in identity theft or other serious internet crimes.

Call a Chicago Internet Crime Defense Lawyer

Internet crimes are very serious in nature and can cost you future employment opportunities. If you have been accused of committing an internet crime, you need effective legal representation. At the Law Offices of Hal M. Garfinkel, we have represented our clients in federal criminal cases for over 28 years, so you will be guaranteed seasoned legal advice. To schedule a free initial consultation, please call a Chicago criminal defense attorney at 312-629-0669 to discuss your case.

 

Sources:

https://www.thebalance.com/top-job-scam-warning-signs-2062181

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