Paul E. Jondle, Tax Evasion, Massachusetts 2016

BOSTON, MA – In a shocking turn of events, former owner of Malden Chiropractic Practice, Paul E. Jondle, pleaded guilty to federal tax fraud in U.S. District Court in Boston today. Jondle, 61, of Salem, N.H., faces up to 5 years in prison, 3 years of supervised release and a fine of $250,000 for his role in filing fraudulent personal federal tax returns.

The charges against Jondle, who operated Future Health in Malden, Massachusetts, stem from his use of the names and tax identification numbers of licensed chiropractors working at the practice for billing purposes. This resulted in insurance company payors reporting payments to the Internal Revenue Service as income to Jondle’s subcontractors, rather than to Jondle himself. In reality, the payments, totaling approximately $3 million from 2003 through 2007, were deposited into bank accounts controlled by Jondle, who reported no taxable income for those years and paid no federal income taxes.

During the years in question, Jondle spent hundreds of thousands of dollars on personal expenses, including mortgage payments on his home, landscaping, tuition payments and pet spas. The charge of tax evasion provides for a sentence of no greater than 5 years in prison, 3 years of supervised release and a fine of $250,000.

The charge of obstructing the IRS provides for a sentence of no greater than 3 years in prison, 1 year of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties.

Jondle is scheduled to be sentenced on January 29, 2016, by U.S. District Court Judge Nathaniel M. Gorton. The case is being prosecuted by Assistant U.S. Attorneys Lori J. Holik and Rachel Y. Hemani of U.S. Attorney Carmen M. Ortiz’s Major Crimes Unit and Trial Attorney Jason M. Scheff of the Tax Division.

The investigation into Jondle’s activities was a collaborative effort between the Internal Revenue Service’s Criminal Investigation in Boston, the Massachusetts Insurance Fraud Bureau, U.S. Postal Inspection Service and the U.S. Social Security Administration, Office of the Inspector General.

The sentencing date for Jondle marks a significant victory in the fight against tax evasion and IRS obstruction. As the Grimy Times continues to investigate and expose cases of tax evasion, the community can rest assured that those who break the law will be held accountable.

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