Ronald L. Simons, Tax Evasion, New York 2011

ALBANY, N.Y. – In a shocking case of tax evasion, certified public accountant Ronald L. Simons, 58, of Vestal, New York, has been sentenced to one year of probation and ordered to pay a $5,000 fine. Simons’ guilty plea, entered on November 8, 2011, has finally come to fruition, with United States Magistrate Judge Christian F. Hummel presiding over the sentencing.

Simons, a partner in the accounting firm of Piaker & Lyons in Binghamton, New York, submitted a fraudulent 2006 income tax return on behalf of David L. and Lynn A. Smith. The return, prepared and submitted to the Internal Revenue Service, conveniently left out $407,000 in fees distributed to David L. Smith from TDM Funding LLC in 2006. Simons reclassified the $407,000 as loans, despite knowing that the McGinn Smith controller initially booked the $407,000 as fees and that David L. Smith previously characterized the majority of the $407,000 as fees.

David L. Smith, a former owner of the Albany broker-dealer McGinn, Smith & Co., Inc., was convicted of conspiracy to commit mail and wire fraud, mail fraud, wire fraud, securities fraud, and filing false tax returns on February 6, 2013, following a four-week jury trial. The case against Simons is a stark reminder of the importance of honesty in tax filings.

The investigation into Simons’ tax evasion was led by the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. Assistant United States Attorneys Elizabeth C. Coombe, Richard D. Belliss, and Wayne A. Myers prosecuted the case.

Simons’ actions have been met with severe consequences, and his sentence serves as a warning to others who may consider similar actions. The case highlights the importance of transparency and accountability in tax filings and serves as a reminder that tax evasion will not be tolerated.

For more information, contact Assistant U.S. Attorney Elizabeth C. Coombe at (518) 431-0247.

The sentencing of Ronald L. Simons is a significant step in upholding the law and maintaining the integrity of the tax system. It is a reminder that tax evasion will be prosecuted to the fullest extent of the law.

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