KANSAS CITY, KAN. - A Leawood attorney admitted today that he concealed his assets and income in an effort to keep the Internal Revenue Service from collecting more than $132,000 in taxes he owed, U.S. Attorney Stephen McAllister said.
David B. Mandelbaum, Leawood, Kan., pleaded guilty to one count of tax evasion. In his plea, he admitted he owed more than $132,000 from the 2005, 2006, 2007, 2009 and 2010 tax years. He concealed his assets and income from the IRS by setting up bank accounts under other identities and making false statements. He also kept personal money in a trust account that was supposed to include only funds belonging to clients, in order to hide that money from the IRS.
Sentencing is set for October 29. He faces a penalty of up to three years in federal prison and a fine up to $250,000. He agreed to pay restitution of slightly more than $202,000, which includes penalties and interest. The Internal Revenue Service investigated. Assistant U.S. Attorney Leon Patton is prosecuting.
Source: U.S. Department of Justice, Office of the United States Attorneys
