Date: 05-06-2016

Case Style: United States of America v. Dr. Michael D. Brandner

Case Number: 3:13-cr-00103-SLG

Judge: Sharon L. Gleason

Court: United States District Court for the District of Alaska (Anchorage County (Borough))

Plaintiff's Attorney: Bryan Schroder and Ignacio Perez de la Cruz

Defendant's Attorney: Mark William Allen and Randy Ensminger

Description: Anchorage, AK - Anchorage Plastic Surgeon sentenced to prison for wire fraud and tax evasion

Defendant concealed bank accounts in Panama and Costa Rica from the IRS

An Anchorage plastic surgeon was sentenced to 48 months in prison for wire fraud and tax evasion.

Dr. Michael D. Brandner, 67, of Anchorage, Alaska, was convicted by a federal jury in November 2015 of four counts of wire fraud and three counts of tax evasion. The charges arose from a scheme to conceal over $5 million of assets in secret bank accounts in Panama and Costa Rica from the Internal Revenue Service (IRS) and Dr. Brandner’s wife. According to the indictment and evidence introduced at trial, shortly after his wife filed for divorce in late 2007, Dr. Brandner collected millions of dollars in marital assets and secretly drove from Tacoma, Washington, to Costa Rica in Central America. In Costa Rica, he opened two bank accounts into which he deposited over $350,000 in cash and hid a thousand ounces of gold in a safe deposit box. He then traveled to Panama where he opened an account under the name of a sham corporation and deposited $4.6 million into the account in 2008.

Dr. Brandner concealed both the existence of the bank accounts and the interest income he earned on those accounts from the court in the divorce proceedings and from the IRS. Dr. Brandner owed the IRS $500,000 in additional taxes for the 2008 through the 2010 tax years. In 2011, Dr. Brandner repatriated over $4.6 million once the divorce was final only to have the funds seized by U.S. Immigration and Customs Enforcement Homeland Security Investigations (ICE HSI) special agents. He then lied to federal agents about his control of the funds.

In addition to the prison term, U.S. District Judge Sharon L. Gleason ordered Dr. Brandner to serve two years of supervised release and pay $25,922.95 toward the costs of prosecution. The judge will also consider the government’s request for restitution for Dr. Brandner’s ex-wife.

“Tax evasion and financial crimes undermine the system of laws that govern this country and demean the vast majority of citizens that pay their taxes and deal honestly and openly with the rules governing a whole array of judicial procedures,” said U.S. Attorney Loeffler. “I appreciate the hard work of the investigators and prosecutors who put the case together and presented it to the jury resulting in these verdicts.”

“Tax evasion knows no geographic bounds,” said Acting Assistant Attorney General Ciraolo. “This case demonstrates that there is no longer any country where it is safe for a defendant like Dr. Brandner to hide money from the government. The Department of Justice, along with its law enforcement partners, will continue to aggressively pursue individuals who conceal assets and income abroad in an effort to evade our nation’s tax laws.”

"Unchecked greed causes financial ruin to those left in its wake and creates an uneven playing field for those who would circumvent the law. Our mission at IRS-CI is to be that check to the fraudulently greedy," stated Special Agent in Charge Teri Alexander of IRS-Criminal Investigation. "Michael Brandner effectively stole from the US treasury and attempted to hide assets and money from the courts in an attempt to skirt the tax laws. We are grateful that the Department of Justice partnered with us to bring Brandner to justice and protect the integrity of our nation's tax system."

U.S. Attorney Loeffler and Acting Assistant Attorney General Ciraolo commend the special agents of IRS-Criminal Investigation and HSI, who investigated the case.

Outcome: Defendant was sentenced to 48 months in prison.

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Defendant's Experts:

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