James L. Quirin, Tax Evasion and Unemployment Benefits Fraud, Illinois 2014

Sauget, IL – James L. Quirin, 59, of Sauget, Illinois, has been sentenced to 27 months in federal prison for a multi-faceted scheme involving tax evasion and unemployment benefits fraud, the U.S. Attorney’s Office for the Southern District of Illinois announced Friday. Quirin’s crimes spanned several years and involved concealing income, making false statements to obtain benefits, and failing to remit substantial taxes to both the state and federal governments.

According to court documents, Quirin brazenly applied for and received unemployment insurance benefits beginning in February 2009, despite continuing to operate a business and earn significant income. To further conceal his earnings, Quirin cashed over $900,000 in unemployment checks—made payable to various business entities he controlled—at a St. Louis tavern over a four-year period. He routinely falsified weekly certifications to the Illinois Department of Employment Security, claiming he was actively seeking work and available for employment, even while reportedly vacationing in Costa Rica and actively engaged in his business.

The investigation revealed Quirin fraudulently received $44,670.00 in unemployment benefits, funds derived from both state and federal sources. Simultaneously, he evaded paying substantial income taxes for the 2006, 2008, and 2010 tax years. In 2008, the IRS issued a federal tax lien against Quirin for $93,844. Despite this, and the influx of cash from the fraudulently obtained unemployment benefits, he failed to satisfy the debt. He even attempted to negotiate a settlement with the IRS, falsely claiming his sole income was unemployment compensation.

The deception extended to his 2009 tax return, where Quirin knowingly understated his business’s gross receipts by over $100,000. The return was submitted under penalty of perjury, further compounding the severity of the offense. U.S. Attorney Stephen R. Wigginton emphasized the gravity of Quirin’s actions, stating he was a “convicted felon, admitted liar and admitted tax cheat.”

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Key Facts

Defendant: James L. Quirin, 59, Sauget, Illinois
Sentence: 27 months federal prison, 3 years supervised release
Restitution: $44,670.00 to Illinois Unemployment Compensation Fund, $384,780.36 to IRS
Fraudulent Period: February 2009 – October 2010 (Unemployment Benefits)
Total Funds Cashed: Over $900,000 through a St. Louis tavern

Legal Violations & Penalties

Quirin was found guilty of one count of Theft of Government Funds, three counts of Tax Evasion, and one count of Filing a False Tax Return. The specific statutes violated include 26 USC 7201 (Attempt to evade or defeat tax), 26 USC 7206(1) (False or fraudulent return), and 18 USC 641 (Theft of public money). In addition to the prison sentence and supervised release, Quirin was ordered to pay a $500 special assessment and significant restitution to both the Illinois Unemployment Compensation Fund and the Internal Revenue Service.

The case was a collaborative effort, investigated by Special Agents from the Department of Labor, the Internal Revenue Service, and, notably, the Environmental Protection Agency. Assistant United States Attorney Michael J. Quinley prosecuted the case, bringing Quirin’s years of fraudulent activity to a close.

Source: EPA ECHO Enforcement Case Database

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