A husband and wife duo from Alexandria, Virginia has pleaded guilty to conspiracy in relation to fraudulent tax filings of a Maryland auto body repair shop.
Ercin Kalender, 60, and Lizette Kalender, 44, both of Alexandria, Virginia, pleaded guilty yesterday to conspiracy in relation to tax fraud within their corporate filings and business taxes. As part of their plea agreements, the Kalenders have been ordered to pay $2,219,602 in restitution.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service – Criminal Investigation, Washington, D.C. Field Office.
According to their guilty pleas, Ercin Kalender owned and operated Butch’s, a very successful Capital Heights, Maryland auto body shop. Lizette Kalender worked at the autobody shop as a manager and bookkeeper. In that capacity, she handled tax reporting matters and regularly worked with an outside tax preparation and accounting agency, which prepared the taxes for Butch’s and the personal tax returns for Ercin and Lizette.
For the fiscal tax years of 2015, 2016, 2017, and 2018, Butch’s reported its income and expenses to the federal government by filing Forms 1120 with the Internal Revenue Service. During this period, the Kalenders conspired with each other to include materially false information on their Form 1120s filed with the IRS on behalf of Butch’s. The false information included on the Form 1120s included a significantly lower report of gross income and taxable income.
The Kalenders jointly worked to divert revenue from Butch’s and avoid significant revenues being deposited into Butch’s corporate bank accounts and reported to the IRS. As part of the conspiracy, the Kalenders kept two sets of financial records for Butch’s, one that reported the actual revenues and profits of the business and a second set that reported lower figures which were used for tax purposes. The Kalenders’ conspiracy to submit false tax returns also involved cashing checks, received at Butch’s at a Prince George’s check cashing facility (Business A).
As stated in their plea agreements, in August 2018, the Kalenders sought to sell Butch’s. As part of the investigation, an undercover federal agent posed as a potential buyer and had contact with the Kalenders. During their conversations, Ercin and Lizette explained the profitability of Butch’s and revealed their practices of the underreporting of revenues and income from Butch’s.
Defendant: Ercin Kalender, 60, of Alexandria, Virginia
Criminal Charges: Conspiracy in relation to tax fraud
City and State: Baltimore, Maryland
Exact Date: Not specified
Sentence: Ordered to pay $2,219,602 in restitution
Amount: $2,219,602
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Key Facts
- State: Maryland
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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