Date: 07-11-2017

Case Style:

Case Number: 0:16-cr-00291-JNE

Judge: Joan N. Erickson

Court: United States District Court for the District of Minnesota (Hennepin County)

Plaintiff's Attorney: John E. Kokkinen

Defendant's Attorney: Bill Mauzy

Description: Minneapolis, MN - Home Health Care Business Owner Sentenced To Two Years In Prison For Tax Fraud

Michael Tobak, 55, to two years in prison for filing a false tax return. TOBAK pleaded guilty on November 7, 2016, and was sentenced on June 29, 2017, before U.S. District Judge Joan N. Ericksen in U.S. District Court in Minneapolis, Minn.

According to the defendant’s guilty plea and documents filed in court, TOBAK operated International Health Care Services (“IHCS”), a non-profit home health care company. TOBAK maintained two business bank accounts that were used to receive payments for services that IHCS provided to Medicaid beneficiaries. TOBAK purposefully omitted from IHCS’s accounting records the activity in one of those bank accounts. TOBAK then used the business income received in that bank account to make payments on his home mortgage, to pay off personal credit cards, and to transfer money to other accounts he controlled, including large transfers to personal investment accounts. In total, between 2006 and 2013, TOBAK obtained approximately $3.3 million in income from IHCS that he did not report on his individual income tax returns. In pleading guilty, TOBAK admitted to willfully filing false income tax returns from 2006 through 2013, causing a total tax loss for all eight years of $1,356,525.

This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS.

Defendant Information:

MICHAEL TOBAK, 55

Wayzata, Minn.

Convicted:

Filing a false tax return, 1 count

Sentenced:

24 months in prison

One year of supervised release

Outcome: Defendant was sentenced to two years in prison.

Plaintiff's Experts:

Defendant's Experts:

Comments: