Dentists Gone Dental

[Tax Man]

1/13/2010 7:15:00 PM
Dentists plead guilty to conspiracy, tax evasion

ROSE COOPER
County Editor


Two area dentists, one with a practice in Wilmington, entered guilty pleas to conspiracy and tax evasion late Tuesday in U.S. District Court in Cincinnati, prior to the start of their trial.

Dr. Bruce A. Mrusek of Maineville and Dr. Bradley C. Brennecke of Pleasant Plain were facing tax fraud charges after being indicted by a federal grand jury on July 22, 2009. They entered guilty pleas in front of Judge Michael R. Barrett, according to the U.S. Department of Justice, the agency prosecuting the case.

Mrusek, who has a practice in Wilmington, and Brennecke, whose practice is in Goshen, were scheduled to go on trial Monday, however, both defendants failed to appear in court. They were subsequently arrested by U.S. Marshals and their bond was rescinded, said Craig Casserly, public information officer for the criminal division of Internal Revenue Service (IRS).

The grand jury indictment alleged Mrusek and Brennecke falsified documents, such as securities, in February 2008 that “purported” to pay the government about $38.8 billion. Mrusek and Brennecke then asked for $9.6 billion as a tax refund.

The indictment alleged they evaded taxes, conspired to defraud the IRS and supplied false tax documents worth billions of dollars.

According to admissions made by the defendants at the plea hearing, Mrusek, who owned and operated Wilmington Dental Management Services, 260 W. Locust St., Wilmington, “evaded his 2002, 2003 and 2004 taxes by transferring his assets to his wife’s name, sending bogus documents to the IRS that purported to pay his tax liabilities, using a trust to pay personal expenses and filing false personal tax returns. Additionally, the indictment alleged that Mrusek filed false tax returns for Wilmington Dental Management Services by reporting deductions that the business did not incur,” according to the Department of Justice.

Also at the plea hearing, the defendants admitted that Brennecke, who operated Goshen Family Dentistry Ltd. in Goshen, “failed to pay taxes for 1998, 2002, 2003 and 2004. Additionally, the indictment alleged that Brennecke transferred title of his house to his wife to conceal it from the IRS, sent the government bogus documents that purported to pay his tax liabilities and filed false tax returns.”

A spokesman for the Justice Department said in other admissions made by the defendants at the plea hearing, “Brennecke and Mrusek conspired to defraud the IRS beginning around the time that the IRS began civil audits of each of them. Brennecke and Mrusek assisted each other in the mailing of various fraudulent documents to the IRS and U.S. Treasury Department. Brennecke assisted Mrusek in the transfer of assets out of Mrusek’s name. For each defendant, the total attempted tax loss was between $400,000 and $1 million.”

Mrusek and Brennecke entered guilty pleas to conspiracy and tax evasion. In return for the plea agreements, six other counts against Mrusek were dropped and four counts were dropped against Brennecke.

Both men face a maximum term of 10 years in prison and a maximum fine of $500,000, along with a three-year term of supervised release, and a $200 special assessment. In addition, the conviction on tax evasion carries an additional penalty of the cost of prosecution.

Mrusek and Brennecke also must pay any tax due along with fines, interest and penalties.

A pre-sentence investigation was ordered. Judge Barrett has not set a sentencing date.

According to the court document, Mrusek and Brennecke had been under criminal investigation since 2005, following a 2004 tax audit.

[Pottapaug1938]

Maybe it all comes from the mercury in the fillings....

[.]

pay the government about $38.8 billion. Mrusek and Brennecke then asked for $9.6 billion as a tax refund.

Which would imply a tax liability of 29 billion and change between them.

Yeah, that'll work. Those billion dollar implants really jack up gross receipts.

[grixit]

Mrusek, who owned and operated Wilmington Dental Management Services

I hope that doesn't mean he was handling the paperwork for other dentists.

[Tax Man]

Sorry - just realized Demo had already posted this story 3 days ago on another thread.

http://www.rothcpa.com/archives/005567.php

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Why I don't have accountants do my root canals
January 13, 2010

Two Ohio dentists decided to help each other with their tax work. The results aren't impressive.

Two area dentists facing charges of tax fraud were arrested Monday after they did not show up for their jury trial that was to begin Monday in the U.S. District Court in Cincinnati.

Dr. Bruce A. Mrusek of Maineville and Dr. Bradley C. Brennecke of Pleasant Plain were arrested Monday by U.S. Marshals and their bond was rescinded, according to Craig Casserly, public information officer for the Criminal Division of the Internal Revenue Service (IRS).

They are accused of making up phony documents -- I'm guessing "bills of exchange" like those Wesley Snipes used -- to "pay" their taxes.

Mrusek and Brennecke allegedly helped each other create and mail fraudulent tax returns and documents.

Mrusek is also charged with filing false business tax returns. His practice is Wilmington Dental Management Services at 260 W. Locust St., Wilmington. According to the indictment, Mrusek’s fake payments to the IRS and/or the U.S. Treasury, total about $19.2 billion.

[wserra]

The guy sure looks like plant food to me.

[jcolvin2]

The guy sure looks like plant food to me.

Little Shop of Shelters?

[The Observer]