PORTLAND, Ore.—The grimy truth behind the facade of a local check cashing business has been exposed as David A. Katz, 48, from Tualatin, Oregon, was found guilty by a federal jury for his pivotal role in a payroll tax scheme that spanned over three years.
Katz, who operated Check Cash Pacific, Inc., conspired with others to facilitate under-the-table payments to construction workers, totaling more than $177 million. This flagrant disregard for the law saw Katz receive commissions of over $4 million while costing the IRS a staggering $44 million in uncollected taxes.
The jury’s decision was a decisive blow against tax evasion, with U.S. Attorney Natalie Wight emphasizing that ‘business owners who abuse the system will be held accountable.’ Special Agent Adam Jobes from the IRS Criminal Investigation unit echoed this sentiment, noting that ‘no one is above paying their fair share.’
According to court documents and trial testimony, Katz’s scheme involved creating sham construction companies to cash payroll checks without reporting or withholding taxes. He was even aware of a co-conspirator using false identification.
The jury convicted Katz on charges of conspiracy to defraud the United States and filing false currency transaction reports with FinCEN. The penalties for his crimes are severe, with potential sentences ranging from five years in federal prison to ten years, fines up to $250,000, and three years’ supervised release.
Three co-conspirators have already pleaded guilty, while two await sentencing. One is serving 30 months in federal prison, another awaits trial, and a fugitive remains at large. This case was the result of an investigation by IRS-CI, prosecuted by Assistant U.S. Attorneys Robert S. Trisotto and Andrew T. Ho.
RELATED: Oregon Check Casher Guilty in $44M Tax Scheme
Related Federal Cases
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Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes|Public Corruption
- Source: Official Source ↗
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