“Accountants Plead Guilty to Conspiracy to Defraud the IRS”

Two Certified Public Accountants Plead Guilty to Conspiracy to Defraud the IRS

In a shocking turn of events, George Sanossian and Jack N. Sardis, both certified public accountants, have pled guilty to conspiracy to defraud the IRS. The announcement was made by Damian Williams, the United States Attorney for the Southern District of New York, and Thomas M. Fattorusso, the Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation.

The guilty pleas were entered in White Plains federal court, with Sanossian’s sentencing scheduled for September 24, 2024, and Sardis’s sentencing set for September 26, 2024.

According to U.S. Attorney Damian Williams, the defendants conspired to fraudulently reduce the tax liability of clients of their accounting firm. This case serves as a reminder to all Americans that they must truthfully report their earnings, as criminal penalties await those who deceive the IRS.

IRS-CI Special Agent in Charge Thomas M. Fattorusso added that schemes to conceal and reduce federal income and payroll tax liability are unfair to law-abiding taxpayers. The prosecution of individuals who intentionally evade taxes is a crucial part of the IRS’s enforcement strategy.

The defendants, who were partners in an accounting firm in Scarsdale, New York, provided accounting and tax services to clients in the construction industry. They advised clients to participate in a scheme to reduce their federal income and payroll tax liability by issuing checks to a shell company, which were then cashed and returned to the clients, allowing them to evade taxes.

Both Sardis and Sanossian have agreed to pay restitution to the IRS and New York State in the amount of $652,883.60, representing the additional tax due as a result of their actions. They face a maximum sentence of five years in prison for conspiracy to defraud the IRS.

The case is being prosecuted by the Office’s White Plains Division, with Assistant U.S. Attorneys Jeffrey C. Coffman and James McMahon leading the prosecution. The outstanding investigative work of the IRS-CI in this case was also praised by Mr. Williams.

This case serves as a stark reminder that tax fraud will not be tolerated, and those who attempt to deceive the IRS will face serious consequences.