In 2006 Denver police began investigating the Denver Players and Denver Sugar escort services for suspected prostitution. They obtained lists of client’s names, credit card bills and also had an informant, who stated thousands of dollars were exchanged for sex.
In spite of the undercover work, and hours of surveillance, the police couldn’t charge the former owner, Scottie Ewing, and a suspected madam, Brenda Stewart, of prostitution. Instead they are being prosecuted by the federal government for evading taxes on the profits made from prostitution. A tax attorney has the qualifications to defend a person facing tax evasion.
Tax evasion charges have more severe consequences than misdemeanor prostitution. According Lt. Matt Murray of the Denver Police, “It is easier to prosecute for tax evasion than the actual crime itself. We can prove no taxes were paid and sometimes it is the easiest, most effective way to prosecute.”
When shutting down a business is the goal, tax evasion is effective in doing so. Hollywood madam Heidi Fleiss was arrested and served time for tax evasion. Notorious gangster, Al Capone was also stopped from continuing his criminal enterprise by being charged with tax evasion.
A tax lawyer can help the person facing tax evasion, or a person who is delinquent in paying their taxes. A prosecution for tax evasion can result in time in prison and deserves the attention of a skillful tax attorney. For those facing delinquent tax payments, a tax lawyer can fight to have penalties and fines reduced.
