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evidence has been presented that this was in fact the case, nor
do we need to delve into petitioner’s intentions at the time he
entered into the plea bargain. The conviction, when coupled with
the five indicia of fraud discussed below, provides persuasive
evidence of fraud.
First, petitioner’s understatement of income was
substantial. He failed to report income from tax return
preparation or immigration services. In addition, he failed to
report nearly 60 percent of his interest income and almost 90
percent of his insurance sales income.
Second, petitioner failed to keep adequate books and
records. He initially provided no sales records, customer lists,
or other related documents to the examiner. Even when
petitioner’s accountant provided those documents, they were not
complete. In addition, petitioner did not produce bank
statements or Forms 1099.
Third, petitioner’s explanations of his behavior were
implausible and inconsistent. Petitioner’s excuse provided to
the examiner that his income records were lost was implausible
and inconsistent because those records were subsequently provided
by petitioner’s accountant. In response, petitioner asserts that
the accountant produced “most, but not all”, of the documents
because some had been lost, and therefore there was no intent to
mislead or conceal anything. Even if some of the documents were
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