DENVER - Nikitis A. Mangeris, age 69, of Berthoud, Colorado, was arrested last Friday (Jan. 18, 2013) at his home for income tax evasion, the United States Attorney’s Office and IRS Criminal Investigation announced. Mangeris was indicted by a federal grand jury in Denver on January 9, 2013 for tax evasion and aiding and abetting in tax evasion. The indictment remained sealed until his arrest and subsequent initial appearance. Mangeris appeared in U.S. District Court in Denver on the day he was arrested and was advised of his rights and the charges pending against him. Mangeris was then released on a $10,000 unsecured personal appearance bond. He is scheduled to appear in court on Jan. 24, 2013 at 10:30 a.m. for arraignment.
According to the indictment, Mangeris operated the Les Beaux Chevaux and Tenet Investment Group businesses. The businesses held Arabian horses (“businesses’ horses") and provided horse breeding services. Approximately twelve of the businesses’ horses were registered with the Arabian Horse Association in the name of Les Beaux Chevaux and approximately two of the businesses’ horses were registered with the Arabian Horse Association in the name of Tenet Investment Group. Mangeris kept and cared for, at his residence, some of the horses including a breeding stallion known as MHR Nobility.
Mangeris has not filed a U.S. Individual Income Tax Return, Internal Revenue Service (“IRS") Form 1040, for calendar years 1997-2003, 2005-2007, or 2010. Beginning in 2002, the IRS conducted an audit of Mangeris for calendar years 1997-1999. On or around February 6, 2004, Mangeris signed an IRS Form 4549, consenting to the IRS assessment and collection of back taxes, penalties, and interest from him for calendar years 1997, 1998, and 1999 for amounts totaling approximately $850,235.77, $18,349.27, and $23,370.24, respectively.
Despite agreeing to these back taxes, penalties, and interest, Mangeris has evaded payment of these amounts. In or around 2004 and 2007, he filed IRS Forms, 433-A - Collection Information Statement for Wage Earners and Self-Employed Individuals, which failed to list all income, assets, liabilities and other information. In or around 2005, he filed an IRS Form 1040, for calendar year 2004, which failed to report, on a Schedule C or otherwise, substantial amounts of income from his horse breeding businesses and receipts from semen sales. Furthermore, Mangeris directed third-party buyers to make payments for the purchase of semen and offspring derived from his businesses’ horses to other individuals and entities holding bank accounts he controlled and paid his own personal expenses through such accounts.
“With tax season around the corner this indictment should serve as a reminder that anyone who evades paying their taxes will be held criminally accountable," said U.S. Attorney John Walsh.
“As tax filing season approaches, this is a reminder that all taxpayers should file complete and accurate tax returns; all income regardless of the source is taxable," said Stephen Boyd, Special Agent in Charge, IRS Criminal Investigation, Denver Field Office.
Mangeris was charged with one count of income tax evasion and aiding and abetting. If convicted, he faces not more than 5 years in federal prison, and a fine of up to $250,000.
This case was investigated by agents with IRS-Criminal Investigation. The case is being prosecuted by Assistant U.S. Attorney Kenneth Harmon and Special Assistant U.S. Attorney Kevin Sweeney. Kevin Sweeney is a trial attorney from the Justice Department’s Tax Division,
The charges contained in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. #
Source: U.S. Department of Justice, Office of the United States Attorneys
