Dick Brocato, Jr. and Judith L. Brocato, Tax Evasion, Texas 2019

A shocking case of tax evasion has hit the streets of Beaumont, Texas. Dick Brocato, Jr., 68, and his wife, Judith L. Brocato, 65, have been indicted on federal tax violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

The couple, who own a lawn service company, Superior Lawn Service, allegedly conspired to defraud the United States for the purpose of impeding, impairing, obstructing, the lawful government functions of the Internal Revenue Service (IRS) in the ascertainment, computation, assessment, and collection of federal income and other taxes for years 2012, 2013, and 2014.

According to the indictment, the Brocatos are alleged to have underreported income received by checks from numerous customers of the company and having the checks cashed and converted to cash rather than depositing the checks into the company accounts and then failing to report the amount on the various tax returns. The underreported income amounted to $503,281 in 2012, $687,534 in 2013, and $513,498 in 2014.

The Brocatos are charged with conspiracy to defraud the United States for purposes of impeding government functions and six counts of making a false return. If convicted, they each face up to five years in federal prison for the conspiracy charge and up to three years for each of the false return charges.

The case is being investigated by the Internal Revenue Service Criminal Investigation Division and prosecuted by Assistant U.S. Attorney Robert L. Rawls. A grand jury indictment is not evidence of guilt. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

The indictment was returned by a federal grand jury on September 4, 2019. The defendants made initial appearances before U.S. Magistrate Judge Keith F. Giblin today.

The alleged scheme was uncovered by the Internal Revenue Service Criminal Investigation Division, who are working tirelessly to bring those responsible to justice.

Source: https://www.justice.gov/usao-edtx/pr/jefferson-county-couple-indicted-falsifying-tax-return