Jason Kronick, Tax Evasion, New Jersey 2021

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Bergen County Man Charged with Tax Evasion

A Bergen County man is facing serious charges after allegedly evading millions of dollars in income taxes. Jason Kronick, 48, of Woodcliff Lake, New Jersey, was charged by indictment on Aug. 25, 2021, with three counts of income tax evasion and one count of employment tax evasion.

Kronick made his initial appearance before U.S. Magistrate Judge André M. Espinosa in Newark federal court and was released on $1 million unsecured bond. The indictment alleges that Kronick evaded payment of more than $4.3 million in income taxes, not including penalties and interest, despite having earned approximately $20 million in taxable income over the tax years 2008 through 2010.

According to documents filed in this case and statements made in court, Kronick used company funds to buy approximately 40 rare and expensive watches worth $1.5 million, paid at least $1.9 million from the business accounts to pay for home renovations, and used company funds to pay at least $700,000 in personal credit card bills.

In addition, the indictment alleges that Kronick transferred more than $700,000 from his business accounts to various casinos, where he converted the money to chips, gambled, and then redeemed chips for cash. Kronick also cashed approximately $160,000 in checks at check-cashing businesses to conceal the proceeds from the IRS. Furthermore, the indictment states that Kronick filed a statement with the IRS in 2011, falsely claiming that he had no income for that year, when in fact he received more than $2.8 million in income.

Each of the four counts of tax evasion carries a maximum penalty of five years in prison and a fine of up to $250,000. Acting U.S. Attorney Rachael A. Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Sarah A. Sulkowski of the Cybercrime Unit in Newark. This case serves as a reminder of the importance of tax compliance and the severe consequences of tax evasion. As the investigation continues, it remains to be seen what other evidence will come to light in this case.