For over 50 years, Bloomberg Tax’s renowned flagship daily news service, Daily Tax Report® has helped leading practitioners and policymakers stay on the cutting edge of taxation and...
The former chief of an energy service company pleaded guilty to state charges that he fraudulently diverted $18.5 million in taxable profits to a Congolese mining operation ( People v. Mole , N.Y. Sup. Ct., No. AG12-7590, guilty plea 1/4/17 ).
Gary Mole, an Australian citizen and the former chief executive officer and sole shareholder of Nevada-incorporated Glacial Energy Holdings, agreed on Jan. 4 to pay restitution of $670,000 for taxes evaded in 2006, 2007 and 2008. He admitted to felony charges of tax fraud and offering a false instrument for filing before Justice Roger D. McDonough of the state Supreme Court for Albany County.
A wholly owned subsidiary of the company, Glacial Energy of New York (GENY), pleaded guilty to tax fraud in the case in December 2015, prosecutors said.
Mole’s sentence calls for the charges against him to be dropped in return for his guilty plea and payment of half the restitution, New York Attorney General Eric T. Schneiderman (D) and acting state tax Commissioner Nonie Manion said in a joint statement. Mole agreed to pay the other half by filing a judgment against himself in favor of the tax agency, they said.
“By diverting millions in income, this defendant showed no regard for the integrity of our tax system or for the many New Yorkers who would be left footing the bill,” Schneiderman said in a statement. “No matter how elaborate the scheme, those who seek to avoid paying their fair share of taxes will be caught and punished.”
As part of the scheme to divert taxable revenue to the Congolese mining operation, prosecutors charged Mole had money sent to bank accounts in the Democratic Republic of Congo, Switzerland, Lichtenstein, South Africa and China. He then deducted the amounts as consulting expenses on GENY’s tax returns, creating a backdated consulting agreement and fake invoices to back up the claims and hide the diversion, according to the charges.
The defense attorney for Mole didn’t respond Jan. 4 to a request for comment.
To contact the reporter on this story: John Herzfeld in New York at firstname.lastname@example.org
To contact the editor responsible for this story: Ryan C. Tuck at email@example.com
Text of the criminal complaint is at http://src.bna.com/k9k.
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)