Michael MacPherson, Mail Fraud and Tax Evasion, New York 2017

BUFFALO, NY – In a shocking turn of events, 56-year-old Michael MacPherson of Kenmore, NY, has pleaded guilty to mail fraud and tax evasion charges. MacPherson’s guilty plea was announced by U.S. Attorney Trini E. Ross.

According to Assistant U.S. Attorney Charles M. Kruly, who is handling the case, MacPherson solicited an individual from Kansas to invest in a bulk cigarette deal in January 2017. MacPherson claimed that he had an agreement with a Native American tribe in New York State to purchase cigarettes at a discounted rate and resell them at a significant markup. However, instead of buying cigarettes, MacPherson used the money for personal expenses, including payments to the Niagara Falls Country Club and Canisius High School, airline flights, hotels, car rental, utilities, retail purchases, gas, clothing, groceries, restaurants, and other merchants.

In December 2017, MacPherson contacted the individual again to solicit a $20,000 investment for the purchase of carbon fiber, representing that the individual would receive his principal investment, in addition to a 30% return, within 180 days. Once again, MacPherson did not use the money as stated, instead using it to pay a defaulted business loan, cash withdrawals, airline flights, car rental, utilities, retail purchases, gas, groceries, restaurants, hockey tickets, and other merchants.

MacPherson also attempted to evade income taxes for calendar years 2015 and 2017. For tax year 2015, he failed to file a federal income tax return despite receiving gross income totaling approximately $265,254, including approximately $232,500 from a second individual. For the 2017 tax year, MacPherson omitted approximately $80,156 in gross business receipts. The amount of tax loss to the United States is $93,815.00.

The plea is the result of an investigation by the U.S. Postal Inspection Service Boston Division, under the direction of Inspector in Charge Ketty Larco-Ward, and the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent in Charge Thomas Fattorusso.

MacPherson faces a maximum penalty of 20 years in prison and a $250,000 fine. Sentencing is scheduled for May 25, 2023, before U.S. District Judge Richard J. Arcara.

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