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Thomas J. Ernst, former Northern Virginia resident, arraigned on tax evasion charges
WASHINGTON, D.C. – Thomas J. Ernst, a former resident of McLean and Arlington, Va., was arraigned today in the Eastern District of Virginia for allegedly evading taxes and impeding the IRS.
According to the indictment, Ernst, the former president and CEO of Medicure Plus Inc., a health insurance benefits administration company, is charged with corruptly endeavoring to impede the IRS, three counts of tax evasion for 2004, 2005, and 2006, and two counts of failing to file corporate tax returns in 2004 and 2005.
The indictment alleges that between 2001 and 2007, Ernst caused Medicure to make payments from its corporate bank account for numerous personal expenses, including a summer rental house, over $1.5 million in payments to himself, his wife, sister-in-law, and children, his son’s Georgetown University college education, and various property purchases and rentals.
Ernst allegedly used nominee bank accounts, purchased and leased assets in the names of his children and sister-in-law, and created fictitious documents to conceal his income and ownership of assets from the IRS.
Ernst did not file U.S. Individual Income Tax Returns, Forms 1040, with the IRS for 2001 through 2006 and is charged with evading his taxes in 2004, 2005, and 2006. He also failed to cause Medicure to ever file a corporate income tax return, Form 1120, and is charged with failing to file a Medicure corporate income tax return in 2004 and 2005.
An indictment is merely a formal charge by the grand jury. The defendant is presumed innocent unless and until proven guilty in U.S. District Court. If convicted, Ernst faces a maximum potential sentence of 20 years in prison.
The trial date has been scheduled for Aug. 2, 2011, before Judge Hilton.
This case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Charles Connolly and the Tax Division Trial Attorneys Caryn Finley and Thomas Krepp.
Defendant’s Information: Thomas J. Ernst, Medicure Plus Inc., McLean, VA, 3/10/2011, Tax Evasion, Impeding the IRS, 20 years in prison.
Key Facts
- State: Virginia
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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