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Former BDO Partner Gets Probation For Cheating on His Taxes

Poor BDO, they never get in the news. But hey, they do today!

Former BDO partner George Mark got off easy this week when U.S. District Judge Nora Barry Fischer said he didn’t deserve to go to jail thanks to his “extraordinary” charitable efforts and remorse for his actions. Mark’s tax evasion was uncovered during an investigation into Pennsylvania beverage company Le-Nature’s, who apparently specialized in nepotism, ass water and fraud.

Mark will instead serve two years of probation and pay a fine of $30,000.

A federal jury recently found Le-Nature’s former president Robert B. Lynn guilty of 10 counts of bank fraud, wire fraud and conspiracy. The jury found him not guilty on 10 additional fraud counts and deadlocked on five others, which left Senior U.S. District Judge Alan Bloch Jr. no other choice than to declare a mistrial on the remaining charges. The company’s CEO Gregory Podlucky and other company officers are facing prison for their part of a $37 million fraud.

While investigating Le-Nature’s ugly mess, the IRS found out that Mark declared fake travel expenses on his 2004, 2005 and 2006 tax returns for about $90,000. The IRS determined that Mark was living the gangsta lifestyle out in the Philly ‘burbs, rented an apartment in NYC, traveled a lot and owned a few luxury cars.

The U.S. attorney’s office had hoped the judge would come down with jail time in order to convince would-be tax cheats that this is serious business but the judge felt Mark’s volunteer efforts for Hope International and other charities was sufficient proof that he wasn’t all that bad of a guy, perhaps just a little misguided.

Back in 2008, 74 investors alleged fraud and negligent misrepresentation against Wachovia Capital Markets, Wachovia Securities and two accounting firms, Ernst & Young and BDO Seidman for their respective parts in the Le-Nature’s scam, in which company officers (mostly CEO Podlucky and his kin) would secure loans for business equipment only to turn around and use that money for things like, oh, sapphires and overpriced watches.

E&Y audited Le-Nature’s until BDO took over. “E&Y was aware that Podlucky could single-handedly influence or manipulate the company’s financial results …” charged the lawsuit. The company basically made up $240 million in revenue and BDO auditors declared the company’s financials were free of material misstatements. FAIL.

Anyway, congratulations to the former partner for, uh, being such a model human being. Or something.

Former NFL Player Avoids Prison…for Tax Fraud

Typically when current or former NFL player gets into trouble with the law it usually consists of 1) drugs/alcohol 2) assault 3) the occasional (or shockingly frequent?) homicide.


Former Buffalo Bills running back Darick Holmes pleaded guilty last year to 15 counts of tax fraud and order to pay $53k in restitution to the IRS. He had been running a scam in Buffalo showing people how to file bogus tax returns, “Holmes admitted that, while spending time in Buffalo in 2004 and 2005, he helped people file tax returns that listed false information about where they had worked and how much they paid in taxes. When the tax filers received refunds, Holmes got a cut of the money.”

Holmes was sentenced to one year of home confinement which had the prosecutor all bent out of shape since Holmes’ co-defendant, Darryle Buckner, was sentenced to a year in prison and wasn’t found to be as “culpable” as Holmes. The judge felt that Holmes was remorseful (that’s a new one for a tax crime) and was impressed with his work with troubled teens.

Holmes has had a rough go of it, he was shot seven times right after his arrest in 2008, according to the prosecutor it was during an $80,000 marijuana deal. Yeesh, This prosecutor guy is really pissed about this sentence.

The real moral of the story is you’re probably better off listening to Joe Biden (?) than an ex-NFL player when it comes getting tax advice.

Ex-Bill Holmes avoids prison in tax fraud case [Buffalo News]