Law firm gofer embezzles $1 mil. from work,so now owes IRS $1 mil.+

[Algorem]

http://www.cleveland.com/news/plaindealer/index.ssf?/base/cuyahoga/11218520677150.xml&coll=2

Wednesday, July 20, 2005

...Garrett, 40, worked for a law firm, running errands for the firm's lawyers and picking up lunch - sometimes catered for conferences. All sides refused to name the firm where Garrett worked, but said he had access to the firm's supply of petty cash.

Between 1998 and 2002, Garrett submitted phony receipts for expenses and lunch purchases he never made. Altogether, Garrett embezzled more than $1 million...

He deposited it in an investment account, and when the company discovered Garrett's crime, he paid it all back plus interest...

He also will have to pay back taxes to the IRS which, because of penalties and interest, will probably exceed $1 million...

[baldguy]

1. The IRS doesn't care how you make your money.

Remember: tax evasion is what they got Al Capone on.

[MercutioATC]

2. A "gofer" overstates expenses by $200k/year and nobody notices???

I could use a job like that...

[gmoney]

3. A good tax lawyer...

...could have that defined as a "loan" because he did pay it back with interest. Loans are not taxable as income. Problem solved.