Tax Evasion Scandal Rocks Boca Raton Community
Michael and James Farnell, two brothers from Boca Raton, Florida, have been sent to prison for their involvement in a tax evasion scheme. According to federal authorities, the duo failed to report millions in capital gains from stock sales between 2004 and 2006.
The Farnell brothers were previously indicted on April 19, 2012, for income tax evasion. In court, they admitted to holding their stock in a privately held Florida-based technology company in the name of nominee trusts. The proceeds from the stock sales were deposited into bank accounts titled in the name of these nominee trusts.
Michael Farnell was ordered to pay restitution of $448,128 to the IRS, while James Farnell was ordered to pay restitution of $434,115. Both brothers were also sentenced to prison time: Michael Farnell received 18 months, while James Farnell received 42 months.
The duo’s scheme was uncovered by the U.S. Securities and Exchange Commission (SEC) in 2004, when the agency filed suit against the Farnell brothers for securities violations at another company they operated in the year 2000.
The case is a stark reminder of the consequences of tax evasion and the importance of reporting all income. The Farnell brothers’ actions were a betrayal of the trust placed in them by their community and the tax system.
Michael and James Farnell are currently serving their prison sentences. The case serves as a warning to others who may be tempted to engage in similar schemes.
Related Federal Cases
- James R.J. Scheltema, Tax Evasion, Florida 2017 · Florida
- Dennis G. Sartain, Tax Evasion and Money Laundering, Florida 2008 · Florida
- Rony Maurival, Tax Evasion and Identity Theft, Florida 2015 · Florida
- Gitano Pierre Bryant Jr., Tax Evasion, Florida 2023 · Florida
- Erik Fresen, Tax Evasion, Florida 2024 · Florida
Key Facts
- State: Federal
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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