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Paul Kenneth Cromar, Tax Evasion and Obstruction, Utah 2005

A former Utah movie producer is facing federal charges after allegedly dodging over $700,000 in taxes and then resorting to desperate measures – including breaking into his own home – to prevent the IRS from seizing his assets. Paul Kenneth Cromar, once the owner of Blue Moon Productions, LLC, is accused of years of tax evasion and a brazen attempt to obstruct the government’s efforts to collect what he owed.

Federal prosecutors unsealed an indictment this week detailing Cromar’s alleged crimes. The feds say Cromar completely skipped filing federal income tax returns from 1999 to 2005, effectively hiding his income and avoiding his tax obligations. When the IRS finally caught up, an audit revealed a staggering $703,266.96 in unpaid taxes, penalties, and interest. Ignoring the debt, Cromar left the feds with no choice but to seek a court order to sell his Cedar Hills home.

That’s when things got really messy. Instead of accepting the legal outcome, Cromar allegedly launched a campaign to sabotage the sale. The indictment claims he filed false documents with the IRS in a pathetic attempt to halt the auction, and actively intimidated potential buyers, trying to scare them off. But the most shocking allegation? The feds say Cromar actually broke into his own home – a home already seized by the government – and unlawfully occupied it.

Sources close to the investigation say Cromar didn’t just squat. He fortified the property, turning it into a makeshift fortress with weapons and barricades, as if preparing for a standoff. This wasn’t a simple refusal to cooperate; it was a full-blown attempt to illegally retake property the courts had ordered seized. The feds say he harassed IRS personnel with frivolous lawsuits, further clogging the system and wasting taxpayer money.

Cromar has been a fugitive since August 2022, evading authorities while the case progressed. The IRS-Criminal Investigation and the Treasury Inspector General for Tax Administration (TIGTA) led the investigation, with assistance from the FBI in tracking down the elusive producer. The charges against Cromar are serious. He could face up to five years in prison for tax evasion, three years for obstructing the IRS, and an additional two years for forcibly retaking seized property.

Federal prosecutors from the Tax Division and the District of Utah are handling the case. It’s crucial to remember that an indictment is merely an allegation, and Cromar is presumed innocent until proven guilty in a court of law. However, the details revealed in this case paint a picture of a man willing to go to extreme lengths to avoid paying his debts and defying the law. The feds are determined to bring him to justice and send a clear message: tax evasion and obstruction of justice will not be tolerated.

The total tax loss to the IRS exceeds $700,000, a substantial sum that impacts public services and demonstrates the seriousness of Cromar’s alleged actions. Sentencing will depend on various factors, including Cromar’s criminal history and the extent of his cooperation, if any. The feds are building a solid case, and legal experts predict a lengthy trial.

This case joins a growing list of recent prosecutions involving tax evasion and complex financial schemes. Just last month, an Oregon payroll company owner pleaded guilty to employment tax fraud, and a Kansas construction firm owner faced similar charges. These cases highlight the ongoing efforts of federal agencies to crack down on those who attempt to cheat the system and defraud the government.

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