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a downward departure from the sentencing guidelines was therefore
appropriate.
On July 19, 2000, petitioner appeared before the U.S.
District Court for the District of New Jersey and pleaded guilty
to violating section 7201 with respect to his 1994 return. In
sworn testimony, petitioner gave the following factual basis for
his guilty plea. During 1994 and 1995, petitioner was president
and owner of an S corporation known as BHN Corp. (BHN), which was
engaged in providing computer software-related products to the
Dreyfus Corporation. In 1994, petitioner traveled to the Cayman
Islands and opened a bank account at the Guardian Bank and Trust
(Cayman) in the name of the Cooper Corp. (Cooper). During 1994,
he diverted about $651,000 of taxable income from BHN by causing
the funds to be deposited into the Cooper account and his
personal bank account in New Jersey. Petitioner caused BHN to
file a Federal tax return that omitted the $651,000 of income.
Petitioner also intentionally failed to include the $651,000 of
income on his 1994 personal Federal income tax return, in a
knowing and willful attempt to evade and defeat a substantial
part of the income tax due and owing to the United States for
1994.
The District Court accepted petitioner’s guilty plea and
entered judgment finding him guilty of willfully attempting to
evade or defeat tax in violation of section 7201 and 18 U.S.C.
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