U. S. District Judge Kevin McNulty also sentenced Mark Smith, who pleaded guilty in September, to one year supervised release, which includes six months of home confinement. He must pay $372,000 in restitution and forfeit more than $820,000 in a related case.
“As we continue with this year’s tax filing season, it is important for people to have confidence that when they pay their taxes, their neighbors and co-workers are doing the same,” stated Jonathan D. Larsen, Special Agent in Charge, IRS-Criminal Investigation, Newark Field Office.
According to court documents, Smith operated Carry Pharmacy in Jersey City, which was owned by one of Smith’s family members. Smith had control of and access to the pharmacy bank account and he admitted that during the 2011 tax year, he withdrew roughly $170,831 from the account for his own use.
Smith admitted that he did not report the money as income on his personal tax return and as a result, he owed approximately $45,423 of additional tax to the Internal Revenue Service. Smith also failed to file personal tax returns for the years 2012 and 2013.
In 2006, Smith was arrested for removing $2,000 worth of prescription drugs without permission from a pharmacy where he worked. He later pleaded guilty.
In 2013 the Drug Enforcement Agency began an investigation of Carry Pharmacy because it was ordering five times the state average of oxycodone, according to court documents.
At the same time, authorities found that Smith was making large deposits — some over $10,000, which triggered the filing of a currency transaction report, court documents said.
The deposits that followed were $10,000 or just below, on consecutive days, to avoid scrutiny. Authorities call the “structuring” of the deposits a sign of an attempt to evade taxes, launder money or traffic narcotics.
When Smith was arrested authorities seized the more than $820,000 that was spread about multiple bank accounts.
JERSEY CITY, N.J. (AP) A pharmacist who failed to report nearly $171,000 he withdrew from the business on his personal tax returns has been sentenced to a year in prison.
Federal officials say Mark Smith must also pay $372,000 in restitution and forfeit more than $820,000 in a related case. He had pleaded guilty last September to filing a false tax return
Smith operated a pharmacy in Jersey City that was owned by a family member. Officials say Smith had control of and access to the pharmacys bank account and that during the 2011 tax year, he withdrew roughly $170,831 from the account for his own use.
Smith didnt report the money as income on his personal tax return that year. He also failed to file personal tax returns for the following two years.