Volume 01 | January 2020
Tax Resolution Times
Volume 1 | Issue 1
Read About Taxpayers with IRS Problems & Find Out How to Solve Them
CPA Gambled Using Rich and Famous Client’s Money 
A gambling addiction led Los Angeles CPA Jonathan Schwartz, the business manager for Alanis Morissette and other well-known performers and athletes, to steal more than seven million dollars from his clients’ accounts.

Schwartz had access to his clients’ bank accounts to pay their bills and get cash for them, but instead, frequently got cash for himself. He concealed the embezzlement by not sending bank statements to his clients. Instead, he sent his clients a prepared statement from GSO Business Management, the firm Schwartz worked for, which contained a false ledger of expenses submitted to the bookkeepers by Schwartz.

Schwartz admitted that between 2010 and 2014 he stole almost five million dollars from Morissette by falsifying records and claiming the expenses were for “sundry/personal” items. He stole more than a million dollars from another client and embezzled $737,500 from yet another client.

Schwartz admitted that he failed to file a tax return in 2012 and failed to report nearly one million dollars in income that year. He owes the IRS almost 1.7 million dollars in federal income taxes. Schwartz was sentenced to six years in prison followed by three years of supervised release. He was ordered to pay $8,657,268 in restitution.
"Today, it takes more brains and effort to make out the income-tax form than it does to make the income." - Alfred E. Neuman
A Very Bad Day in Court
New Jersey tax preparer Brian Day pleaded guilty to filing false tax returns and bank fraud in a scheme to misappropriate clients’ money and defraud the IRS.

Day told his clients that they owed more money to the IRS than they actually did. He instructed them to write checks made out to the IRS and then altered the payee information on the checks to make them payable to one of his tax prep companies. He made these false claims to at least five individuals, resulting in a loss of $124,289.

When two clients questioned him about the checks he presented them with fake documents he claimed were from the IRS.

In addition, Day is accused of submitting at least 21 false tax returns to the IRS from tax years 2009 to 2015, resulting in a loss of approximately $491,000 to the IRS.

From 2013 to 2015 he also inflated clients’ tax forms by more than $383,000 to get them bigger tax returns.

Day was sentenced to 32 months in prison and ordered to pay nearly $500,000 in restitution.
I’d Like to Hear From You!
If you have an IRS issue, or just want to refer a friend, relative or client, we’d love to hear from you. 

We can provide a no-obligation confidential consultation to help you solve your IRS problems.

Geaux Tax Resolution
Bryon Garrety, CPA
(985) 722-1040
(337) 420-1040