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reference to that account as salary paid to Mr. Oria during 2000.
The Form W-2 Medico issued to Mr. Oria for 2000 reported
that Mr. Oria had received wage or salary income of $543,600 in
2000. Mr. Oria reported that amount on the Form 1040. Both the
Forms W-2 and 1040 understated Mr. Oria’s wage or salary income
from checks issued to him by Medico in the amount of $248,524.
Mr. Loeser met or spoke with Mr. Oria on numerous occasions
and attempted to explain Medico’s tax returns and general ledger
to him, but Mr. Oria was not interested in Mr. Loeser’s
explanations, regarding them as “mumbo jumbo numbers”, and he
made little or no attempt to understand them. In response to a
question from his attorney as to whether he questioned Mr.
Loeser’s plan that Medico would pay Mr. Loeser money and it would
save Medico taxes, he answered:
Well, no. I believed him for several reasons. My
best friend told me that it was working fine for him.
* * * [Mr. Loeser is] an accountant; I’m not. And,
third, in all honesty, I thought it was a rite of * * *
[passage]. Here I am now making seven figures, and you
always hear guys that make that kind of money, you got
all kinds of these loopholes that you can do. So I
said: Sure, it makes sense to me; what have we got to
do.
His attorney then asked him: “What did he tell you you had to
do?” Mr. Oria answered:
Well, just like I said. I mean, he would tell me
I got to pay money to his entities, and we would sit
down once a month, once a quarter –- I’m not sure –-
and he would do this math. Okay, Alex; you’ve already
paid yourself 100 grand this month. By paying –- your
normal tax burden that would be 40 grand. By paying
Bayliwix or one of those entities that he has 20-, you
just –- and then I would lose him there, and, you know,
it looked like I was saving money, because I was paying
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Last modified: November 10, 2007