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Tax law

Ohio Man Charged with Filing False Tax Returns

Strategic Insights

— 1 min read

The United States Attorney's Office for the Northern District of Ohio announced that an Ohio man residing in Switzerland, Edward Gurary, has been charged with filing false personal income tax returns for the years 2004 through 2008. According to court records, Gurary failed to report interest income earned on his Demko bank account at UBS and also failed to disclose his foreign financial account to the IRS. This case highlights the importance of accurately reporting foreign financial accounts and income earned on these accounts to the IRS.

Key Takeaways:

  • Edward Gurary, a 45-year-old Ohio man, was charged with filing false personal income tax returns for the years 2004 through 2008.
  • Gurary failed to report interest income earned on his Demko bank account at UBS, which contained balances ranging from $490,000 to $947,000.
  • Gurary also failed to disclose his Demko account at UBS to the IRS, despite receiving interest payments ranging from $3,400 to over $21,000 between 2004 and 2008.
  • Gurary used a code name "Vanda" to control transactions in the Demko account from an OfficeMax in the Cleveland area, using faxes to UBS in the Bahamas.
  • The case was investigated by the IRS in Cleveland and is being prosecuted by Assistant U.S. Attorney John M. Siegel and Tax Division Trial Attorney Richard M. Rolwing.
  • If convicted, Gurary faces a maximum of 3 years in prison and a fine of $250,000.

Statistics:

  • The Demko account at UBS contained balances ranging from $490,000 to $947,000 between 2002 and 2008.
  • Interest was paid into the Demko account in amounts ranging from $3,400 to over $21,000 between 2004 and 2008.
  • The IRS received no FBARs or disclosure information from Gurary between 2004 and 2008.
  • Gurary used faxes from an OfficeMax in the Cleveland area to control transactions in the Demko account between 2002 and 2008.

Sources:

  • United States Attorney's Office for the Northern District of Ohio
  • Department of Justice
  • Internal Revenue Service (IRS) Criminal Investigation in Cincinnati
  • www.usdoj.gov/tax

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