An Oregon check cashing business operator faced the music in federal court yesterday, with a jury convicting him for his part in deflecting the IRS's attempts to collect millions in payroll and income taxes on the wages of construction workers, according to a recent report by the U.S. Attorney's Office for the District of Oregon.
David A. Katz, 48, of Tualatin, Oregon, didn't just run the check cashing business, but also actively engaged in a conspiracy to defraud the United States, by filing false currency transaction reports with the Financial Crimes Enforcement Network (FinCEN), and his operation at Check Cash Pacific, Inc., was a pivotal point in a shrewd scheme that saw over $177 million of payroll checks cashed, enabling construction workers to get paid under-the-table in a concerted effort that skirted around the rightful claws of the taxman.
The U.S. Attorney for the District of Oregon, Natalie Wight, didn’t mince words, stating, "This defendant’s efforts to help others circumvent their tax responsibilities was thwarted thanks to the dedicated criminal investigators at the IRS." Wight continued to underscore the communal responsibility, asserting, "Business owners who abuse the system and help others hide taxable income will be held accountable," the U.S. Attorney's Office for the District of Oregon stated in the report.
And it wasn’t a trivial amount Katz pocketed; he earned a 2% commission on every piece of the cake, totaling upwards of $4 million over the duration of the conspiracy, where IRS Criminal Investigation Special Agent in Charge, Adam Jobes, highlighted the communal impact of Katz's conspiracy: "Mr. Katz’s conviction by a jury of his peers emphasizes the fact that no one is above paying their fair share, and shows that CI is committed to investigating those who choose to undermine their communities," Jobes said, emphasizing the damage to the social fabric when such schemes go unchecked.
Countdown to justice has begun for Katz’s co-conspirators too: three have already pled guilty to felony charges with two awaiting sentencing and one already condemned to 30 months behind bars, another awaits trial, and one managed to become a fugitive – a stark visual, that crime, indeed, is often a collective, not merely the act of a lone transgressor.
The investigation into Katz's dealings was spearheaded by the IRS-CI and the case prosecution was in the hands of Assistant U.S. Attorneys Robert S. Trisotto and Andrew T. Ho for the District of Oregon. As the gavel falls on this case, with conspiracy to defraud the United States carrying up to five years in federal prison plus fines, and false currency transaction reports packing a potential decade behind bars and more fines, it's a harsh reminder that the road to deception is fraught with the direst of consequences.
