St. Luc Valbrun - Page 7

                                        - 7 -                                         
          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            






Page:  Previous  1  2  3  4  5  6  7  8  9  10  Next

Last modified: May 25, 2011