A Georgia man has been sentenced to a stint in federal prison after pleading guilty to filing false tax returns related to his lucrative dog brokering business. Justin Daniels, 48, reportedly misrepresented the earnings from selling pups, pocketing more than $1 million without properly reporting it to the IRS. The Marietta businessman, who dealt in breeds like Yorkies and Shi-Tzus, was given a 14-month sentence followed by a year of supervised release, according to a statement from the U.S. Attorney's Office for the Northern District of Georgia.
Daniels operated his pet dealing business since 2006, leading his clientele to believe they were adopting dogs raised directly by him. However, the puppies were actually raised by breeders in Kentucky and Tennessee. This ruse turned out to be significantly profitable, with dogs selling for up to $1,200 each. In the span of four years, between 2015 to 2018, Daniels' income reached a whopping $2.3 million, but he willfully chose to underreport a staggering $1,186,830 in gross receipts, resulting in an additional $258,265 in taxes owed to Uncle Sam.
"Rather than pay his fair share of taxes, Daniels spent years submitting fraudulent returns in the name of personal greed," U.S. Attorney Ryan K. Buchanan commented. Lisa Fontanette, Assistant Special Agent in Charge of IRS Criminal Investigation in Atlanta, echoed the sentiment, warning that such intentional deceit will be relentlessly pursued and penalized. Daniels has additionally been ordered to pay back the quarter-million dollars in outstanding taxes.
The case against Daniels was built upon evidence of his financial deception, with the IRS Criminal Investigation diving into the depths of his banking and tax records. Daniels not only duped the tax authorities but also hoodwinked private lenders by presenting falsely inflated earnings to secure loans. The justice meted is meant to serve not just as a consequence for Daniels but as a deterrent to others inclined to similarly attempt to cheat the system. He was convicted of these charges on December 5, 2023, after entering a guilty plea, and was sentenced on April 22, 2024.
The investigation was led by the Internal Revenue Service Criminal Investigation, with Assistant U.S. Attorney David A. O'Neal and former Assistant U.S. Attorney Thomas Krepp prosecuting the case. For anyone seeking further information, contact details have been made available through the U.S. Attorney's Public Affairs Office.
