Michael George Fitzpatrick, Tax Evasion, Idaho 2013

Idaho Businessman Sentenced to Prison for Income Tax Evasion

A 51-year-old Hope, Idaho, businessman has been sentenced to 42 months in prison for evading income taxes, according to the Grimy Times investigation.

Michael George Fitzpatrick was convicted of two counts of tax evasion in January 2013 by a Coeur d'Alene, Idaho, jury. He was also ordered to serve three years of supervised release and pay just under $1.4 million in restitution to the IRS for unpaid individual and corporate federal income taxes.

Fitzpatrick operated a business selling products which purported to help individuals eliminate credit card debt. During 2003 and 2004, gross sales from the business, operating under the names Dynamic Solutions, Inc. (DSI) and North American Educational Services, Inc. (NAES), exceeded $9 million.

According to the indictment and evidence introduced at both trials, Fitzpatrick failed to report $3.7 million and Fitzpatrick himself failed to report over $500,000 in income, resulting in a total tax loss of $1,397,762. The evidence further established that Fitzpatrick last filed an individual income tax return in 1996.

Fitzpatrick argued at length that the income tax laws did not apply to him, but the evidence showed he expended significant time and expense to put all of his property in the names of nominees. Additionally, Fitzpatrick sent over $5 million offshore to a bank located in the Dominican Republic and used over $1 million of his money hidden offshore to buy real estate and gamble in Las Vegas.

This case sends a strong message that those who defy our nation's tax laws will be investigated and prosecuted to the fullest extent of the law, said Assistant Attorney General for the Justice Department's Tax Division Kathryn Keneally.

Defendant: Michael George Fitzpatrick, 51, of Hope, Idaho

Charges: Two counts of tax evasion

City and State: Hope, Idaho

Date: January 2013

Sentence: 42 months in prison, three years of supervised release, and $1,397,762 in restitution

Dollar Amount: $1.4 million in restitution, $3.7 million unreported income, $500,000 unreported income

Source: https://www.justice.gov/usao-id/pr/idaho-businessman-sentenced-prison-income-tax-evasion