Los Angeles- 27 August 2012 – IRS News, LawFuel.com – Today, Kevin J. Mirecki, 53, was sentenced to six months federal custody, one year of supervised release, and ordered to pay restitution of $206,419 to the Internal Revenue Service (“IRS”). Mirecki was also fined $20,000 by U.S. District Judge Dale S. Fischer for his failure to file Federal income tax returns.
On February 9, 2009, Kevin Mirecki pleaded guilty to three counts of failing to file Federal tax returns. Mirecki failed to file an individual federal income tax return (Form 1040) and two corporate income tax returns (Forms 1120) for his companies Kevin J. Mirecki, Inc. and American & International Corporate Services (AICS). According to the plea agreement, Mirecki admitted he failed to report over $1.3 Million in personal income for years 2000 through 2003. Mirecki also admitted in the plea agreement that he created Genesis Fund Ltd. as a Nevis corporation and created trusts for four individuals charged in the March 2005 indictment.
On March 30, 2005, nine defendants were indicted in the investigation of the Genesis Fund in an 83-count Indictment charging violations of conspiracy, wire fraud, mail fraud, tax fraud, money laundering, obstruction and forfeiture statutes. Eight defendants pleaded guilty and one defendant was convicted of tax evasion after a jury trial in September, 2011. Sentences for these defendants ranged from 12 months probation to 62 months imprisonment.
According to court documents, the criminal investigation was initiated because of Mirecki’s persistent pattern of failing to file tax returns and pay income taxes even after IRS intervention. During this investigation it was learned that Mirecki had performed trust-related work for individuals involved with the Genesis Fund. Genesis Fund was marketed as an investment in foreign currency trading.
Mirecki received a lighter sentence today than many defendants in related cases due to his substantial assistance and testimony in the investigation and prosecution of criminally culpable individuals related to the Genesis Fund. Mirecki testified at a Federal criminal trial in another judicial district and testified for the government.
“Kevin J. Mirecki’s cooperation was valuable to federal law enforcement and assisted in the successful prosecution of multiple defendants and orders of restitution to investors and the IRS. Notwithstanding this cooperation, those who intentionally fail to file their tax returns and fail to pay taxes must know that there is a price to be paid, including time in prison. Today’s sentence reflects the nature and severity of the tax crimes committed by Mirecki, while at the same time reflecting the scope of his cooperation with the government. Mirecki’s sentence is meant to restore integrity and faith in the nation’s tax system”- Leslie P. DeMarco, Special Agent in Charge of IRS Criminal Investigation Los Angeles Field Office.
The investigation of Kevin J. Mirecki was conducted by IRS – Criminal Investigation in the Los Angeles Field Office and prosecuted by the Department of Justice Tax Division, Western Criminal Enforcement Section.