Rodney Ermel, aged 71, from Colorado, has pleaded guilty to charges of tax evasion and conspiracy to defraud the United States. The guilty plea was made before United States District Court Judge Mark Kearney, as announced by United States Attorney David Metcalf.
Court documents and statements revealed that Ermel, who owned a Colorado-based accounting firm, provided services alongside co-defendant Kenneth Bacon for Joseph LaForte, LaForte's wife Lisa McElhone, and their business entities. Ermel conspired with LaForte, Bacon, and others to conceal approximately $20 million in income through fraudulent accounting practices. This included fabricating shareholder loans and claiming "bad debt" deductions. The tax returns filed by Ermel reportedly underreported taxable income by over $20 million from 2016 to 2018, resulting in more than a $8 million loss to the United States.
Ermel has become the fourth individual to plead guilty in connection with this tax fraud scheme. His sentencing is set for September 3.
The FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General are actively investigating the matter. The case is being prosecuted by Assistant U.S. Attorneys Matthew Newcomer and John J. Boscia from the Eastern District of Pennsylvania, alongside Trial Attorney Ezra Spiro from the Justice Department’s Tax Division.
