Dentist admits to tax scheme.
Byline: Thomas Caywood
WORCESTER -- A Shrewsbury dentist admitted in federal court Friday that he schemed for a dozen years to try to hide his income from the tax man.
George Fenzell, 57, who lives in Douglas and practices in Shrewsbury, pleaded guilty to one count of felony tax evasion in U.S. District Court in Worcester.
Four other counts of tax evasion and one count of corruptly endeavoring to obstruct the Internal Revenue Service were dropped by prosecutors as part of the plea deal.
The terms of the plea agreement were not disclosed in court, but Dr. Fenzell could have faced up to five years in jail and $250,000 in fines had he been found guilty at trial of a single count of tax evasion.
The dentist is scheduled to be sentenced Feb. 18.
Dr. Fenzell owed more than $300,000 in back taxes, interest and penalties at the time of his indictment in March, officials said. He was charged with tax evasion during the period of 2000 to 2012.
Prosecutor John N. Kane Jr. of the U.S. Department of Justice said Mr. Fenzell tried to hide his income from the government by stashing his dental business behind multiple layers of trusts and shell entities and by funneling his earnings through so-called "warehouse'' bank accounts that mingle funds from many sources. Dr. Fenzell went to "extraordinary lengths,'' including having his mother open a bank account in Florida, to conceal his income from the IRS, Mr. Kane said.
Dr. Fenzell continued to try to conceal his income from the federal government even after a state Department of Revenue investigation in 2007 found he owed more than $100,000 in back taxes, the prosecutor said.
Contact reporter Thomas Caywood at firstname.lastname@example.org or follow him on Twitter @ThomasCaywood
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|Publication:||Telegram & Gazette (Worcester, MA)|
|Date:||Nov 22, 2014|
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