Glenn Richard Unger, Tax & Fraud Charges, New York 2014

ALBANY, NEW YORK – In a shocking case of tax evasion and fraud, a former orthodontist in New York has been convicted of trying to bilk the IRS out of a staggering $36 million, according to a federal jury verdict returned today in Albany.

GLENN RICHARD UNGER (62, of Ogdensburg, NY) was found guilty of obstructing and impeding the Internal Revenue Service (IRS); filing false claims against the United States; tax evasion; and passing fictitious obligations, announced Richard S. Hartunian, United States Attorney, Northern District of New York, Toni M. Weirauch, Special Agent in Charge, Internal Revenue Service, Criminal Investigation, New York Field Office, and Andrew W. Vale, Special Agent in Charge of the Federal Bureau of Investigation, Albany Division.

The evidence at trial showed that between 2007 and 2011, UNGER filed 14 false tax returns claiming that he earned substantial income, had substantial withholdings on that income, and was entitled to $36 million in tax refunds. Despite numerous warning letters from the IRS that his returns were frivolous, he continued filing false tax returns.

In addition to obstructing the IRS by filing false and fraudulent claims for refund, the evidence at trial also showed that UNGER attempted to evade payment of taxes he owed to the IRS. During 2004 and 2005, UNGER earned income and failed to file tax returns reporting that income. The IRS assessed taxes for those two years and also assessed penalties for filing frivolous tax returns. After the IRS filed a tax lien against UNGER, he attempted to file a false document with the Saratoga County Clerk’s office attempting to release the lien. Evidence at trial also showed that UNGER tried to pay off a debt to another orthodontist with a fictitious document purported to be worth $200,000.00.

As a result of the convictions, the defendant is facing a total statutory maximum term of imprisonment of 25 years and a maximum fine of $250,000.00. Sentencing is scheduled for March 10, 2014, before Senior U.S. District Judge Thomas J. McAvoy.

The U.S. Attorney’s office praised the IRS, FBI, New York State Police, and Treasury Inspector General for Tax Administration for their diligence and professionalism in bringing about a just and appropriate verdict.

The prosecution of individuals who brazenly attempt to obstruct the Internal Revenue Service and prevent it from performing its mission is vital to maintaining public confidence in our tax system, said Special Agent-in-Charge Toni Weirauch.

The FBI is committed to vigorously investigating individuals like Mr. Unger who steal from the federal government for financial gain through schemes designed to avoid payment of taxes and other obligations owed the federal government, said SAC Vale.

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