Doctor Pleads Guilty to Fraudulent Tax Return Scheme

Dr. Peter Zavell of Florence, S.C., has pleaded guilty to one count of filing a false tax return for the year 2000, according to federal prosecutors. The medical doctor was scheduled to go to trial today before Judge R. Bryan Harwell.

Zavell was indicted in August 2007 for conspiracy to impede the IRS and for filing false returns for years 2000 and 2001. He is accused of using a fraudulent scheme involving the ‘Look Back’ and ‘Look Forward’ programs marketed by Anderson Ark and Associates (AAA) to create fictitious entities and business transactions, totaling a tax loss of $244,784.

The feds allege that Zavell used the AAA Look Back program to set up a sham partnership for false expense reporting and to eliminate his individual tax liabilities. Through the AAA Look Forward program, he is accused of creating a fictitious partnership with his medical practice, engaging in fictitious business contracts to generate false expenses and reduce business tax obligations.

Nathan J. Hochman, Assistant Attorney General of the Tax Division at the Department of Justice, commented, ‘Dr. Zavell joins more than a dozen other AAA customers who now face life as convicted felons for their participation in illegal tax fraud scams.’

Eileen Mayer, Chief of IRS Criminal Investigation, stated that individuals involved in abusive tax schemes will be held accountable and criminally prosecuted, emphasizing the importance of maintaining public confidence in the fairness of the tax laws.

As part of the plea agreement, charges against Zavell’s wife, Susan Zavell, were dismissed. Sentencing has not yet been set; Zavell faces up to three years in prison and a fine of $250,000. Assistant Attorney General Hochman commended the IRS special agents and Tax Division trial attorneys Kevin C. Lombardi and Gregory R. Bockin for their work on the case.

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