Wayne Dunich-Kolb, Tax Return Preparer Indicted in New Jersey for Tax Fraud and Refund Theft Schemes
A federal grand jury in Newark has returned a 29-count second superseding indictment against Wayne Dunich-Kolb, a former Bergen County, New Jersey, tax return preparer, alleging that he filed false federal income tax returns, stole client refunds, and committed identity theft in connection with refunds stolen from a deceased taxpayer.
Wayne Dunich-Kolb, 53, of Montvale, New Jersey, was originally charged by indictment in March 2014 with five counts of aiding and assisting in the filing of false federal income tax returns and four counts of subscribing to false tax returns. In December 2016, Dunich-Kolb was charged by superseding indictment. Today’s second superseding indictment adds five counts of aiding and assisting in the filing of false tax returns, 12 counts of mail fraud, and two counts of aggravated identity theft, all of which were allegedly committed while the defendant was on pretrial release.
Dunich-Kolb was arrested this morning. The initial appearance on the new charges is scheduled for Monday, April 2, 2018, before U.S. Magistrate Judge Steven C. Mannion.
According to the second superseding indictment, Dunich-Kolb prepared and filed, through the U.S. mail, fraudulent returns through various tax preparation entities, including Dunich-Kolb LLC, Jadran Services Corp., Adriatica Payroll Corp., Adriatica Tax Planning LLC, and Adriatic Tax Planning LLC, which he ran from his former residence in Saddle River and then from his current residence in Montvale. Dunich-Kolb also maintained a U.S. Post Office box in Las Vegas, Nevada, that he used in connection with his tax preparation business.
Dunich-Kolb caused many of his clients to form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability. He prepared false and fraudulent business returns for clients’ fictitious businesses by fabricating and inflating business expenses, such as advertising, travel and other miscellaneous expenses, in order to generate fraudulent business and partnership losses, which he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns.
Dunich-Kolb falsified clients’ 2007, 2008, 2009, 2010, 2011, 2013, 2014, 2015, and 2016 individual federal income tax returns (original and amended), partnership returns, and corporation returns by fabricating and inflating: (1) business and partnership Schedule K-1 losses; (2) deductions for unreimbursed employee business expenses, including home office, vehicle mileage and fuel expenses; and (3) expenses and cost basis of rental properties, including vehicle mileage and travel expenses for rentals located within or a short distance from the primary residence.
Dunich-Kolb also falsified his own personal federal income tax returns by substantially underreporting income from his tax preparation and accounting business for tax years 2006, 2007, and 2008. For these tax years, Dunich-Kolb received gross income totaling approximately $500,000 to $657,000 per year. Dunich-Kolb falsely claimed income of only $400 for 2006, $526 for 2007, and $489 for 2008.
Dunich-Kolb also stole certain clients’ federal tax refunds, including the refunds of a deceased client, by causing the IRS to mail the refund checks to Dunich-Kolb’s Las Vegas Post Office box, from where they were mail-forwarded to Dunich-Kolb’s residence in Montvale. Dunich-Kolb, without authorization, used the Social Security numbers of the deceased client and another client on IRS forms claiming that the latter client was entitled to the deceased client’s refunds for tax years 2013 and 2014 and causing the IRS to mail the deceased client’s refunds to his Las Vegas Post Office box. Once in receipt of the clients’ tax refund checks that had been mail-forwarded to his residence, Dunich-Kolb deposited the checks into accounts in his own name.
Mandatory Facts:
- Defendant: Wayne Dunich-Kolb
- Criminal Charges: 29-count second superseding indictment alleging tax fraud, mail fraud, and identity theft
- Location: Newark, New Jersey
- Date: April 2, 2018
- Outcome: Currently pending
Key Facts
- State: New Jersey
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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