- 4 -
3. Shortly after obtaining the insurance, petitioner
submitted a claim for a theft he alleged had occurred about May
1, 1992. In addition to the two paintings, petitioner alleged
the theft of a Persian rug, jade statue, and two Russian icons.
4. During 1993, petitioner received, net of attorney's
fees, $365,250 from the insurance company.
5. On April 10, 1995, respondent advised petitioner that
his 1993 tax return had been selected for audit. During the
course of the audit, petitioner represented that the paintings
and other items were stolen from his residence. The paintings
petitioner claimed to possess had been in the possession of the
Vatican art museum for at least 200 years.
6. No theft actually occurred, and a September 8, 1995, FBI
search of petitioner’s residence revealed that petitioner
continued to have possession of the icons and rug. On that same
day, petitioner was indicted on five counts of mail fraud in
violation of 18 U.S. Code sec. 1341 (1994). On February 27,
1996, petitioner pleaded guilty, admitting that no burglary had
occurred and that his insurance claim was fraudulent.
7. Petitioner failed to report the illicit insurance
recovery on his 1993 Federal income tax return.
Respondent may carry his burden by means of facts that are
treated as established in instances where a taxpayer fails to
Page: Previous 1 2 3 4 5 6 Next
Last modified: May 25, 2011