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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.
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