Victor KarpiaK, Tax Evasion, Washington 2024
A former bank CEO has been sentenced to one year in prison and a $150,000 fine for failing to report more than $2.3 million in income on his taxes, announced U.S. Attorney Brian T. Moran.
Victor KarpiaK, 64, who previously served as President and CEO of First Savings Bank Northwest based in Renton, Washington, was sentenced to one year and a day in prison and one year of supervised release for filing a false tax return.
The tax loss on more than $2,321,750 in income is $867,540. KarpiaK will pay $867,540 to the IRS as well as any interest or civil penalties the IRS imposes in the case.
Between 2010 and 2016, KarpiaK served as a trustee and consultant for a woman who was the beneficiary of a family and a marital trust. He paid himself fees of $3,265,072 but on his taxes KarpiaK reported less than a third of that income ($943,322).
KarpiaK will also pay $143,647 in interest on the tax loss. He previously made a payment on his tax obligation of more than $1 million as part of his sentencing hearing.
“Today Mr. KarpiaK was held accountable for willfully and intentionally violating his legal duty to declare and pay his taxes,” said Justin Campbell, IRS Criminal Investigation Special Agent in Charge, Seattle Field Office.
The case was investigated by the Internal Revenue Service Criminal Investigation (IRS-CI) and is being prosecuted by Assistant United States Attorneys Steven Masada of the Western District of Washington and Elizabeth Altman of the Western District of Wisconsin.
KarpiaK, who now resides in La Crosse, Wisconsin, was charged in the Western District of Washington but chose to have the case resolved near his new home.
According to prosecutors, KarpiaK engaged in the tax fraud even as he earned significant salary and benefits as the bank CEO, and now has four homes across two states, multiple luxury vehicles and a pension of more than $150,000 annually.
“Our system of government relies on individuals --- particularly high-earners such as KarpiaK --- to pay a modest portion of earnings toward communal projects and programs… (T)he true victim of KarpiaK’s greed remains the public and his fellow taxpayers, from whom he effectively stole,” prosecutors wrote in their sentencing memo.
Key Facts
- State: Washington
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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