Related Federal Cases
Multi-Million Dollar Tax Evasion Scheme Lands Defendant 70 Months in Prison
Morris Zuckerman, a Manhattan energy investor, has been sentenced to 70 months in prison for evading over $45 million in income and sales taxes. Zuckerman, the principal of M.E. Zukerman & Co., an investment firm located in Manhattan, pleaded guilty on June 3, 2016, to engaging in multi-year tax fraud schemes.
According to the allegations in the indictment, Zuckerman schemed to evade taxes based on income received from the sale of a petroleum products company in 2008. He falsely told his accountants that he had transferred ownership of the company to a family trust in 2007, creating backdated documents to support the false story. This allowed Zuckerman to remove the company from consolidated tax reporting, evading the reporting to the IRS of the sale and the payment of over $33 million in corporate income taxes.
Following the sale of the company, Zuckerman transferred the proceeds to his family trust, personal bank accounts, and various corporations he controlled. He used over $50 million of these funds to purchase paintings by European artists, which he used to decorate his Upper East Side apartment and the apartments of two family members.
Zuckerman also schemed to defraud New York State of over $4.5 million in sales and use taxes by transporting the paintings from corporate addresses in Delaware and New Jersey to his residence in New York without paying taxes. He also caused tax return preparers to prepare false and fraudulent deductions and expenses on his U.S. Individual Income Tax Returns.
Acting U.S. Attorney Joon H. Kim stated, ‘While amassing a personal fortune through the $130 million sale of his company, Morris Zuckerman cheated on his taxes for years, illegally scheming to evade almost every one of his tax liabilities. Through his criminal schemes, Zuckerman deprived the public of over $45 million in taxes he rightfully owed.’
Zuckerman’s sentence reflects the severity of his crimes and the significant amount of taxes he evaded. His case serves as a reminder of the importance of paying taxes and the consequences of tax evasion.
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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