In a recent announcement, United States Attorney Andrew M. Luger confirmed that Bernard James Benavidez, owner of Master Jewelers, Inc. in Rochester, Minnesota, has been sentenced to a six-month prison term. Following his incarceration, Benavidez faces a year of supervised release — his punishment for committing tax crimes. Court documents reveal that between 2013 and 2017, Benavidez diverted sales from his business to personal accounts, failing to report a total of $432,373.42, leading to a shortfall in taxes owed by $147,006.96.
Benavidez's case, detailed by the U.S. Attorney's Office, highlights an intentional scheme to avoid paying proper taxes. By channeling money from his company into personal bank accounts, Benavidez aimed to minimize his tax burden, occasionally instructing customers to compensate him directly for the store's services. Having sold substantial amounts of scrap metal, these proceeds too were placed into his coffers, not the corporate account — a careful maneuver to sidestep their inclusion in tax returns.
The investigation, carried out jointly by IRS – Criminal Investigations, shed light on a calculated financial deceit. According to Special Agent in Charge Justin Campbell, quoted by the U.S. Attorney's Office, "Financial crimes involving the concealment, diversion and manipulation of business funds can be quite difficult to detect." Campbell lauded the IRS-CI special agents for their meticulous work which led to bringing Benavidez to justice.
Pleading guilty on February 3, 2023, to making and subscribing a false tax return, Benavidez was sentenced yesterday by Judge Wilhelmina M. Wright. The sentencing underscores a clear message to business operators: tax evasion is a serious offense with tangible consequences. "The sentencing of this individual underscores the fact that IRS-CI special agents are as meticulous as they are dedicated to bringing to justice business owners who attempt to evade their tax obligations," Campbell explained, sent forth by the stern force of law, demonstrating unwavering dedication to combating fiscal malfeasance.
