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United States of America v. Gregory VanDemark
Case Number: 1:18-cr-00143-MRB
Judge: Michael R. Barrett
Court: United States District Court for the Southern District of Ohio (Hamilton County)
Plaintiff's Attorney: Megan Gaffney Painter and Kelly K. Rossi
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Cincinnati, OH - The United States of America charged Gregory VanDemark with tax fraud.
A federal jury, spread across the courtroom to practice social distancing, returned a guilty verdict Wednesday evening on all counts charged, finding a Cincinnati businessman guilty of six charges related to tax fraud.
Gregory VanDemark, 64, was convicted of four counts of aiding and assisting in the preparation and filing of false income tax returns with the Internal Revenue Service (IRS), one count of structuring transactions to evade the reporting requirements, and one count of making a false statement.
According to court documents and trial testimony, VanDemark’s IRS returns claimed he owed no taxes for 2013 and 2014, even though he earned $1 million per year from his used car business, Used Car Supermarket, Inc.
At the same time, VanDemark owned homes in Cincinnati and Florida and a summer home on the Ohio River designed as a paddleboat replica (that he falsely deducted on his taxes as a bed and breakfast).
Also in 2013 and 2014, VanDemark structured more than $157,000 in cash payments made on a home mortgage at a bank in Bethel, Ohio for the purpose of evading the currency transaction reporting requirements.
VanDemark skimmed 25 percent of his business earnings in order to alter his taxes owed. He also claimed numerous improper deductions.
When he was interviewed by IRS special agents in 2016, VanDemark made a false statement by stating all of the money he made from his business was deposited in the bank and he never skimmed cash from his businesses.
“I want to commend the government’s prosecution team on presenting a flawless case to the jury,” said Bryant Jackson, Special Agent in Charge, IRS, Criminal Investigation. “The jury has sent a very strong message to business owners and taxpayers that if you skirt your income tax liabilities, try to avoid the currency reporting requirement and then lie about it, you will be judged guilty for such conduct by a jury of your peers.”
Aiding and assisting in the preparation and filing of false income tax returns with the IRS carries a maximum penalty of three years in prison and a fine of up to $250,000. Structuring financial transactions and making false statements carries a maximum penalty of five years in prison and a fine of up to $250,000. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
26:7206(2) FRAUD AND FALSE STATEMENTS
31:5324(A)(3) STRUCTURING TRANSACTIONS TO EVADE REPORTING REQUIREMENTS
18:1001 STATEMENTS OR ENTRIES GENERALLY
Outcome: Defendant was found guilty.